Mortar is a masonry product which is matrix of concrete. It consists of binder and fine aggregate and moreover, it is an essential associate in any reinforced structural construction. The strength of mortar is a special concern to the engineer because mortar is responsible to give protection in the outer part of the structure as well as at a brick joint in masonry wall system. The purpose of this research is to investigate the compressive strength and tensile strength of mortar, which are important mechanical properties, by replacing the cement and sand by stone dust. Moreover, to minimize the increasing demand of cement and sand, checking of appropriateness of stone dust as a construction material is necessary to ensure both solid waste minimization and recovery by exchanging stone dust with cement and sand. Stone dust passing by No. 200 sieve, is used as cement replacing material and retained by No. 100 sieve is used for sand replacement. Sand was replaced by stone dust of 15%, 20%, 25%, 30%, 35%, 40%, 45% and 50% by weight of sand while cement was replaced by stone dust of 3%, 5%, and 7% by weight of cement. Test result indicates that, compressive strength of specimen mix with 35% of sand replacing stone dust and 3% of cement replacing stone dust increases 21.33% and 22.76% respectively than the normal mortar specimen at 7 and 28 days while for tensile it increases up to 13.47%. At the end, optimum dose was selected and crack analysis as well as discussion also included.