The disposal problem of industrial by-products like fly ash, heavy metal sludge, sewage sludge etc. are increasing day by day. To use by-products in large volume the applications like embankment fill or aggregate replacement material should be considered for sustainable development. This study is focused on properties of artificial light weight aggregate on concrete and the effect of cold bonded light weight aggregate on concrete through partial and complete replacement of coarse aggregates. Artificial Lightweight aggregate can be produced by nodulizing the by-product for example fly ash in a pelletizer with a proportionate quantity of water, cement and further hardened by cold bonding or sintering. Due to the impact of earth quake forces all over the world, the need for light weight structural design is increasing presently, as it reduces mass of the structure. The concrete produced is light weight in nature and has added the benefit of reducing overall cost, especially in transportation and placing etc. it has its own advantages like reduced dead load, and thus economic structures, high sound absorption and good fire resistance. Keywords—Artificial light weight aggregate, cold bonding, Fly ash, Fly ash aggregate, Pelletization, and Sintering.