Bio-mineralization by urease bacteria in fibre composite concrete greatly enhances the mechanical and durability properties of concrete. Utilization of sustainable building material is an important principle in sustainable construction, which focuses on a greener environment. In 1994, the International Council of Buildings established these principles based on the effective use of resources and to safeguard them from non-renewable conditions. This work focusses on the idea of ameliorating the mechanical characteristics of grouted concrete using bacteria, steel fibres (SF), and bio-based lightweight aggregate (BBLA). The factors examined in this study include two different BBLA sizes of 10 mm and 12.5 mm, with constant dosages of 2% hooked end steel fibres by volume of concrete, 10% rice husk ash (RHA), which were used as a cement substitute for the preparation of grout, and direct application of bacteria to cement grout. Incorporation of 10 mm BBLA in grouted concrete increased mechanical properties in compressive strength (CS) by 31.39%, compressive strength regain (CSR) by 45.91% and impact strength (IS) by 94.59%. After 56 days of curing, crack healing percentage of non-bio-based lightweight aggregate (NBLA) and BBLA showed 75.3% and 89.44% healing respectively. Microstructure characterization of BBLA specimens conducted using scanning electron microscopy (SEM) and X-ray diffractometer (XRD) revealed the existence of CaCO₃ compounds, formed due to the bio-mineralization activity of bacteria in grouted concrete.