The present paper investigated the process of the slag wool fabrication using high temperature blast furnace (BF) slag modified by coal ash (CA). The liquidus temperature and viscosity of the slag system with different mass ratios of BF slag and CA were measured through an inner cylinder rotation method. The approximate mass ratio used to fabricate the slag wool was therefore determined and slag wool was then successfully prepared with a high-speed air injection method in the laboratory. The effect of mBF/m ratio, slag temperature for injection and air pressure on the preparation of slag wool was systematically investigated. The mechanical and thermal properties were also studied to confirm the long-term working conditions of the slag wool. An industry-scale slag wool production application was established. The energy consumption and the pollutant generation, were analyzed and compared with the traditional production method, which indicated a 70% reduction in energy consumption and a 90% pollution emission decrease.