Abstract A study undertaken at the University of Liverpool has investigated the potential for using construction and demolition waste (C&DW) as aggregate in the manufacture of a range of precast concrete products, i.e. building and paving blocks and pavement flags. Phase II, which is reported here, investigated concrete paving blocks. Recycled demolition aggregate can be used to replace newly quarried limestone aggregate, usually used in coarse (6 mm) and fine (4 mm-to-dust) gradings. The first objective, as was the case with concrete building blocks, was to replicate the process used by industry in fabricating concrete paving blocks in the laboratory. The compaction technique used involved vibration and pressure at the same time, i.e. a vibro-compaction technique. An electric hammer used previously for building blocks was not sufficient for adequate compaction of paving blocks. Adequate compaction could only be achieved by using the electric hammer while the specimens were on a vibrating table. The experimental work involved two main series of tests, i.e. paving blocks made with concrete- and masonry-derived aggregate. Variables that were investigated were level of replacement of (a) coarse aggregate only, (b) fine aggregate only, and (c) both coarse and fine aggregate. Investigation of mechanical properties, i.e. compressive and tensile splitting strength, of paving blocks made with recycled demolition aggregate determined levels of replacement which produced similar mechanical properties to paving blocks made with newly quarried aggregates. This had to be achieved without an increase in the cement content. The results from this research programme indicate that recycled demolition aggregate can be used for this new higher value market and therefore may encourage demolition contractors to develop crushing and screening facilities for this.