An attempt has been made in this research to produce pavement concrete with innovative coarse aggregate. Steel slag is a byproduct and waste material produced in steel industries. This kind of solid waste material creates disposal problem and environmental effects. Demand of concrete and consequently the aggregate demand was rising fatly. Hence, it is necessary to find other substitute for aggregates. Experiments were conducted to determine the compressive strength, Young’s modulus, flexural strength, Poisson’s ratio, Abrasion resistance and impact strength of concrete with different percentage of steel slag aggregate. Pavement design is carried as per IRC: 58-2002.The results specify that with the rise in percentage of steel slag aggregate the strength decreases when compared to the normal concrete, but at the same instant the strength satisfied the grade (M40) concrete up to 50% replacement of steel slag. Increase of steel slag from 10% to 100% showsimprovement in Impactstrength as compared with normal concrete. However use of this kind of materials in road construction, will reduce the cost of construction, leads to alternate the conventional material and makes the environment pollution free.