Developing renewable materials has emerged as a global priority to fulfill the rising need for green building materials. The proposed research aims to develop ultra-high volume fly ash cement pastes (UHVFP) modified with industrial hydrated lime (HL), which incorporates a massive amount of fly ash to substitute conventional cement for environmentally friendly purposes. The porosity, drying shrinkage, compressive strength, and chloride ion penetration tests were conducted on UHVFP samples containing different HL contents (0, 5, 10, 15, 20, and 25%). Overall, the test results suggest that the addition of 5–15% HL enhanced the compressive strength of UHVFP samples throughout all stages of curing. At 120 days, the UHVFP samples with 15% HL possessed the highest compressive strength of 49.7 MPa, whereas this value of the 25% HL sample achieved the lowest load-bearing capacity of 24.1 MPa. This finding was in good agreement with the porosity and drying shrinkage results since desired engineering properties can be obtained by controlling the HL usage of less than 15%. By using an appropriate HL content (5–15%), the ion charge transmitted through the UHVFP combination can be minimized, resulting in a 40% increase in resistance over the reference mixture. The test results confirmed that the porosity and the ion charge values are strongly correlated since a lower porosity value can prevent chloride ions from diffusing through the mixture accompanied by a denser structure. Thus, the 15% HL was found as an optimum content in UHVFP to achieve maximum performance and promote sustainable development purposes.