Coal which is a very promising material in industry for a growing country like India produces Fly-ash which is creating a great threat to the environment. Fly-ash is mainly used for the dumping purpose or as a fine aggregate. The study is aimed to develop a technique for producing an aggregate with the fly-ash and use it in the in replacement of normal coarse aggregate. The properties of fly-ash were experimentally checked whether it is of type-C or of type-F by chemical analysis of the fly-ash. Batches of fly-ash aggregates were manufactured using cold bonded technique using disc pelletilizer. Based on the crusing value, water absorption and impact value test results of their properties, fly-ash aggregates were selected. Using the fly-ash aggregates prepared from the cold bonded technique, there properties were tested. These pellets will be light in weight having specific gravity (1.63,1.89) less than that of gravel(2.67) and will have high impact value(32.52, 28.54) than that of gravel(20.12). At the same time, they will also address some of the environmental problems such as disposing the industrial waste which is being generated from thermal waste.