<p>The environmental effects of the cement industry have boosted the need to use sustainable stabilizers on earthen construction materials. This research paper examines compressed stabilized earth block (CSEB) development using waste marble powder as an alternative stabilizing medium to minimize cement reliance and emphasize the use of industrial waste. The soil taken at Jalozai was described with index and compaction test, and three mix proportions with different cement (8–12%), lime (5–10%), and marble waste powder (17.5–22.5%) were prepared and tested. The compressive strength, flexural strength, and water absorption tests were conducted to measure the mechanical and durability performance. The findings show that the combination with the 12% cement, 8% lime, and 20% marble waste had the highest compressive strength of 24.28&#xa0;MPa, maximum flexural strength of 18.70&#xa0;MPa, and the least water absorption of 7.3%. It can be explained by the fact that increased particle packing caused by the presence of marble dust, and stabilization of the material by pozzolanic reactions produced by lime, increased the performance, whereas an excessive content of the marble material (22.5%) led to a lower performance. An embodied CO₂ emission reduction of up to 25% over a conventional cement-stabilized CSEB and the effective diversion of marble waste out of the landfill were demonstrated by a cradle-to-gate life cycle assessment based on ISO 14,040/14,044 derived directly out of the mix design. Moreover, a cost-benefit analysis showed that there was an estimated 4.8% decrease in unit production cost in the optimized mix. In general, the results show that lime-marble dust composites have the potential to promote CSEB performance and provide measurable environmental and economic impacts, which proves their applicability to sustainable and circular construction practices.</p>