Phosphogypsum (PG) is the most significant solid waste in the world. However, only 15% of it is recycled, and the rest is stored in useless and environmentally-damaging stockpiles, which are continually growing. Therefore circular economy of PG through its utilisation in useful applications, is relevant and critical from an ecological perspective. In this context, its utilisation in building materials is among the most promising and attractive recycling possibilities, since PG typically exhibits excellent binding properties. However the applicability of PG is often restrained by its radiological risks and economic non-competitivity in comparison to traditional building materials, such as natural gypsum. In some cases, these obstacles refer to cultural prejudices and misinformation rather than real issues. Therefore, through a comprehensive literature review, this article considers the real potential of PG in building materials, providing useful information to interested stakeholders.