<p>Cement production is a major contributor to CO₂ emissions, significantly impacting global warming and climate change. To mitigate this, research is focused on reducing cement consumption and enhancing the efficiency of concrete through the use of supplementary binding materials (SBM) and technological developments. One technological development is functionally layered concrete (FLC), wherein concrete is laid in layers that have different characteristics that offer customized properties for specific building needs. This study investigates the performance of FLC made from two concrete grades (M30 and M20) using pozzolana cement (PC) and slag cement (SC), respectively, in a 50:50 layer arrangement. Further, the replacement of PC 40–70% from M30 with blast furnace slag powder (BFSP) and limestone powder (LSP) was checked. Mechanical properties such as compressive, tensile, and flexural strengths were tested at 7, 28, 91, and 182&#xa0;days. Durability was assessed through sulfate resistance and water absorption tests. Environmental performance was evaluated by analyzing embodied carbon and energy, while cost-effectiveness was assessed through the cost–benefit analysis and economy index. The FLC demonstrated significantly enhanced performance compared to 30P concrete, with compressive strength increased by 33–39%, tensile strength by 9–13%, flexural strength by 4–16%, sulfate resistance by 23–32%, and water resistance by up to 39% over the curing period of 7 to 182&#xa0;days. Furthermore, replacing 40–60% of cement in FLC with a combination of 33–53% BFSP and 7% LSP led to additional improvements in compressive strength by 37–46%, tensile strength by 10–16%, flexural strength by 7–14%, sulfate resistance by 23–39%, and water resistance up to 63%. Embodied carbon, embodied energy, and cost were reduced by 30, 25, and 15%, respectively. Micro-level analyses like scanning electron microscopy validated macro-level findings, highlighting the sustainable potential of FLC.</p> Graphical Abstract <p></p>