Industrial waste iron can be a viable alternative construction material due to its sustainable environmental convenience. This paper presents the efficacy of the use of recycled iron powder (RIP) in manufacturing concrete. The focus of this study is to evaluate the physical, mechanical, and durability properties of concrete where RIP is used as a partial replacement of the fine aggregate. It was found that physical and durability properties such as fineness modulus, specific gravity, water absorption, and soundness of concrete improved by replacing 10, 20, 30, and 40% natural sand with RIP. The temperature of the fresh concrete gradually increased with an increased percentage of RIP mixing, but the workability decreased. The density of the RIP-modified concrete increased, and the porosity decreased with an increase in the percentage of RIP. After 7 and 28 days of curing, it was found that the compressive strength of the concrete was the highest (38.21 MPa) with 40% RIP, whereas the control mix (i.e., no RIP) had a compressive strength of 27.85 MPa. The findings of this study provide a better understanding of the use of RIP in producing new concrete.