Bauxite tailing is a byproduct of the aluminum production process, engendered in enormous quantities. This material is generally dumped in nearby industrial lands, causing inconvenience to the environment and living organisms. Numerous studies have been carried out to unearth the applications of this waste for various field applications such as embankment, subgrade, retaining fill, etc. This study presents a novel approach to road construction sustainability by investigating industrial waste bauxite tailing and delving into the environmental, economic, and technical feasibility. Life cycle assessment of tailing was employed to evaluate the ecological impact in comparison to conventional soil. The analysis was developed based on the series of ISO 14040 (2022) and 14044 (2022). The sustainability effects were studied in terms of the total amount of resources used/saved, emissions produced/limited, and quantified impacts across different categories such as global warming potential (GWP), acidification potential, eutrophication potential, primary energy, ozone depletion potential, resource depletion, and smog potential. The results indicate that incorporating tailing in road construction may significantly reduce greenhouse gas emission and resource depletion, while enhancing engineering performance. Significant ecological impact reduction across all indicators, such as almost the entire volume of soil in subgrade and embankment was replaced by the bauxite tailing, which saved approximately 40% reduction in GWP, and almost 20–45% reduction in other parameters accounted for. Overall, this study introduces a viable and sustainable alternative in road construction, contributing to waste reduction and promoting circular economy practices in the construction industry.