Agricultural waste burning is a significant source of pollution in India, especially after the harvesting season. Bio-brick was developed as an alternative and sustainable building material that is made up of agricultural waste. And at the same time, it will also lead to the reduction of air pollution and create new jobs at the grassroots level. This research paper defines the relationship between bio-bricks and circular economy model and its benefits to the rural economy and society as a whole. It has both direct and indirect benefits such as reduction of air pollution and the potential to be reused at the EOL or as filler material. It also documents the process of initial testing and product development. Product iteration started with creating blocks of bio-bricks, followed by initial experiments to determine physical properties. These results led to the redevelopment of product in term of forms and functionalities. New iterations can also be used for industrial settings such as enclosure for machinery and equipment as a sandwich or reinforced boards. Manufacturing of bio-bricks has the potential to eliminate the problem of disposal of agricultural waste at source. It can create a new economic model for farmers and lead to the development of agriculture-based industries. Based on our research findings, we find bio-bricks can be developed as a carbon-negative, sustainable and economically viable material for construction. With the right kind of product development and incentives, it can diversify into numerous products satisfying the needs of an ecologically sensitive future. © 2021, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.