For the manufacturing lightweight fine aggregate, clay and waste material was formed by pelletizer. The fine aggregate of 1-5 mm diameter was formed by diameter 76 cm pelletizer disc. Pelletization variables were : (1) pelletizer disc angle, (2) speed of revolution of pelletizer, (3) added pelletization time. Green and sintered aggregate were measured specific gravity, absorption rate and average size. The optimum condition were found that the pelletization variables were angle at $70^{circ}$, speed of revolution of pelletizer at 23.2 rpm, and water/solid ratio at 1/5. At these conditions, it was formed that fine aggregate green whose average size was $2.0{sim}3.35mm$. Specific gravity and average size are increased with low angle of disc and fast revolution speed of disc. Specific gravity and average size were not distinctly influenced by added pelletization time. Sintered aggregate was distinctly influenced by properties of green.