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Sun is the main source of solar energy and the energy it releases to the earth's surface in one hour is more than what the whole planet consumes in a year. This work is about developing a novel material to use as both energy storage and diffuser in constructing flat plate solar collector. Materials used are clay and granite dust obtained from Okelele and Kulende Quarry site, both in Ilorin, Nigeria. The materials were sundried; the clay crushed before the two materials were sieved into different particle sizes. They were thereafter blended into different ratios and then characterized for thermal, physical and mechanical properties. Results showed that the highest thermal conductivity, thermal diffusivity and compressive strength were obtained from sample of particle size 0.075mm and clay: granite ratio 50:50 (0.268176 W/mK, 3.58514x10-4 m²/sec and 3.571 N/m² respectively). This same blend has a density of 0.91 g/cm³, specific heat capacity of 824 J/kgK. This sample, having the optimal thermal, physical and mechanical properties will be a good replacement for conventional insulating materials currently being used for solar flat-plate collector construction as it will serve as both energy storage and diffuser. [ABSTRACT FROM AUTHOR]