The growing issue of waste accumulation poses significant challenges to environmental sustainability. In the paper industry, the hypo plant produces considerable slurry as a form of waste, which contributes to environmental contamination when disposed of improperly. Additionally, cement manufacturing exacerbates global warming by emitting release of carbon dioxide into the atmosphere. To mitigate these environmental impacts, using industrial waste in concrete production can be beneficial. This study investigates the use of using hypo sludge as a partial substitute for cement in concrete mixtures. To enhance the concrete’s strength, polypropylene fiber (PPF), a synthetic polymer made from hydrocarbons, was included. A total of 450 specimens were cast by adjusting the ratios of hypo sludge and polypropylene fiber across multiple combinations, ranging from low to high proportions. The concrete’s workability was evaluated immediately after mixing, while compressive and split tensile strength (STS) tests were conducted after curing for 7, 14, and 28 days. The results reveal that increasing the proportions of hypo sludge and polypropylene fiber reduces workability, shifting it from moderate to low. However, the addition of both materials enhances the strength of the concrete up to a certain level, beyond which a significant decline in strength occurs. The ideal combination for attaining maximum strength and reducing brittleness is 10% hypo sludge and 0.5% polypropylene fiber. Furthermore, incorporating hypo sludge leads to an 18.35% saving in concrete costs.