This study examined the use of coal bottom ash (BA) from Tuncbilek Thermal Power Plant, Turkey, as an aggregate to produce aerated concrete. The BA was used as an aggregate with different replacement amounts. To determine the effect of ash incorporation on the final product properties, chemical, physical, mechanical, and microstructure analyses were performed. Results show that using BA in autoclaved aerated concrete (AAC) formulations caused a unit weight decrease in the produced AAC for all concerned BA replacement ratios. However, it was observed that for the concrete having 25% and 50% BA usage has also beneficial effect on the strength gaining of the AAC. Thermal conductivity values reduced with increasing BA replacement ratio.