Coal which is a very promising material in the thermal industry for growing country like India. While burning in thermal power plant produces huge amount of fly ash. Fly ash which is creating great threat to environment and facing problem while disposing. The alternate source of managing fly ash is the utilization in construction industry. In the construction industry, major attention has been devoted to the use of fly ash in concrete as a cement replacement. The study aims to develop a technique for manufacture an artificial lightweight aggregate with fly ash and used as the replacement of normal coarse aggregate. The properties of the fly ash class-C were experimentally  werechecked and chemical analyses are done. The fly ash aggregate was manufactured using cold bonded technique use disk type of pelletizer. The Portland cement is used as the binder. Superplasticizer is added to improve the workability of fly ash aggregate. The artificial aggregate was prepared with various proportions of cement with Fly-ash for the ratio of 25:50, 25:75 (C: FA). The physical properties of fly ash aggregate are conducted specific gravity, bulk density, voids, crushing strength, impact value, fineness modulus abrasion value, water absorption, attrition value are determined.