This study aimed to expand the knowledge on the application of the most common industrial byproduct, i.e., fly ash, as a supplementary cementitious material. The characteristics of cement-based composites containing fly ash as supplementary cementitious material were discussed. This research evaluated the mechanical, durability, and microstructural properties of FA-based concrete. Additionally, the various factors affecting the aforementioned properties are discussed, as well as the limitations associated with the use of FA in concrete. The addition of fly ash as supplementary cementitious material has a favorable impact on the material characteristics along with the environmental benefits; however, there is an optimum level of its inclusion (up to 20%) beyond which FA has a deleterious influence on the composite’s performance. The evaluation of the literature identified potential solutions to the constraints and directed future research toward the application of FA in higher amounts. The delayed early strength development is one of the key downsides of FA use in cementitious composites. This can be overcome by chemical activation (alkali/sulphate) and the addition of nanomaterials, allowing for high-volume use of FA. By utilizing FA as an SCM, sustainable development may promote by lowering CO2 emissions, conserving natural resources, managing waste effectively, reducing environmental pollution, and low hydration heat.