Two Stage Concrete (TSC) is a special method of making concrete by placing coarse aggregate on the formwork and filling the spaces between the aggregates with grout material. TSC can produce concrete in places where it is difficult to transport agitator trucks. Previous research has shown that the strength of TSC is not depended on the type of grout material and coarse aggregate. In addition, it was shown that the fresh properties of the grout material to achieve TSC must be highly fluid and viscous. On the other hand, about 1 million m3 of concrete sludge (sludge) is generated annually in Japan. Most of this sludge is dewatered to a solid form (generally called sludge cake) and disposed of as industrial waste. In addition, as efforts to achieve carbon neutrality are being promoted worldwide, the development of concrete for decarbonization is being promoted. Therefore, in this study, a grout material using ground granulated blast furnace slag (GGBS) was prepared by utilizing concrete sludge. In addition, recycled crushed stone (RC40) was used as the coarse aggregate of TSC to reduce the environmental impact, aiming to realize environment-friendly TSC. In this study, a simulated sludge was prepared by adding stabilizers to maintain the active state of the cement in the sludge. The sludge grouting material was subjected to the JP funnel test to confirm its fluidity. Also, a mini-slump flow test was conducted to confirm the flowability and viscosity of the sludge-utilizing grout material. From the test results, it was determined that the sludge-utilizing grout material had the freshness properties to realize the TSC. Core sampling of TSC made with the grout material and recycled crushed stone confirmed that air bubbles remained in the TSC. Therefore, the TSC was made with pre-wetting of the coarse aggregate, and the air bubbles inside the TSC were reduced. Finally, TSC was fabricated using environment-friendly grout material and coarse aggregate that was pre-wetted with recycled crushed stone. The strength of the TSC was confirmed, and the environment-friendly TSC was suggested.