The production of concrete in the last thirty years show a constant increase which brings to overuse of natural resources. The demand for substitute materials is therefore increasing accordingly. On the other end, great amounts of waste material which is produced as a byproduct of different types of industries, and is by itself hard to dispose, brings greatly to the pollution and lack of sustainability of the environment at the moment. Taking everything mentioned into account, the original idea of this thesis is recycling of PVC sawdust, industrial byproduct of the production of PVC carpentry, in the form of a raw material in the production of mortar and concrete. The main focus of this thesis is to determin the influence of PVC sawdust on the basic properties of fresh and hardened cement mortar. In the experimental part of this thesis several mixtures of cement mortar were made in which different volume percentages of sand were replaced with PVC sawdust from 0%, 5% and 10% respectively. The properties of fresh mortar were tested, as well as the mechanical and durability properties of hardened mortar. The use of additives solved problem with the workability of fresh mortar that was noticed in earlier experimental investigation. The experimental results of hardened cement mortar show a decreasing trend on compressive and flexural strength with the increase of PVC sawdust in comparison to the reference mixture. However, test results from capillary water absorption and wear resistance show improved properties in the mixture with PVC sawdust compared to the reference mixture. With further testing, it was noticed that PVC improves the ductility of the samples as well. It can be concluded that mortar, with the optimal sand replacement with PVC sawdust, and the use additives for better workability, can be applied in practice. In case if it is necessary to improve the mechanical properties, which are decresed by adding PVC sawdust, as well as the impermeability and durability, it is recommended to add pozzolanic material e.g. metakaolin which has been proven in this thesis.