Traditional PVA fiber-reinforced Engineered Cementitious Composites (ECC) show high tensile ductility and superior durability with tight crack width, but the high cost and embodied carbon can hinder its wider application in infrastructures. The objective of this study is to develop a better understanding of the fresh and hardened properties of an ECC that employs a lower embodied-carbon binder, Limestone Calcined Clay Cement (LC3), and lower-cost PP fiber that is widely available. Specifically, the interrelations between material processing, microstructure, and composite properties were studied experimentally. The results showed that ECC with high tensile ductility up to 9% tensile strain and tight crack width with 50 μm at 2% tensile strain can be achieved. It was found that a matrix paste with higher viscosity generally enhanced fiber dispersion uniformity and robustness in tensile strain-hardening. The paste viscosity is increased when OPC is replaced by LC3 and can be tuned with superplasticizer content. Larger maximum flaw size leads to lower first crack strength, beneficial for microcrack initiation and multiple cracking. This study generates fundamental knowledge linking processing-microstructure-performance of PP-LC3-ECC. This class of low embodied carbon ECC with tight crack width is expected to contribute to reducing the carbon footprint of the built environment.