When processing the waste paper into the tissue paper products, there arises up to 30 to 40 percent of the paper sludge. Today, this sludge is used as an ingredient to manufacture the bricks, to produce compost, or to reclaim the mining pits. The current methods of disposal and recovery of this sludge are cost-intensive, and they often limit the actual quantities of the processed paper waste. Suitably modified papermaking sludge can be used as construction boards or building blocks. It must endeavour to satisfy the requirements for wholesomeness, compressive strength, density, moisture expansion, fire and frost resistance, and thermal and sound insulation. This work presents the authors’ current designing and testing of the manufactured construction elements based on paper sludge.