Due to wide applications and durability, plastic has become an essential part of human life. In recent years, plastic production has reached up to 353 million metric tonnes globally; only 9% of the total is recycled. Most plastic waste ends up at landfill sites, which pose severe environmental contamination and toxicity issues in terrestrial and aquatic environments. The thermal treatment of waste plastic (pyrolysis, gasification, and incineration) has been widely recommended for its disposal, but it is also not cost-effective and environmentally safe. Recent studies indicate that waste plastic could be used effectively in the construction industry for concrete blocks, composite blocks, and plastic tiles. However, developing new construction materials using plastic waste is crucial for the construction and recycling industries. Research has shown that recycling plastic waste for construction purposes could greatly enhance climate sustainability and provide dependable source material for construction supplies. Meanwhile, the manufacturing cost of such building materials is lower than that of traditional construction materials. This chapter summarized the potential of waste plastic substances in eco-friendly and cost-effective building material development, contributing to a carbon–neutral economy under the flagship of the circular economy process. This chapter also examines the advantages of newly developed construction materials over conventional ones regarding economic viability, environmental sustainability, and construction quality.