This paper presents a comprehensive investigation on the positive potential of steel slag (SS) to mitigate the autogenous shrinkage of alkali-activated slag (AAS) while maintaining a reasonably high strength. Changes of the physicochemical properties of AAS with the addition of SS were examined in terms of hydration heat, autogenous shrinkage, chemical shrinkage, internal relative humidity (RH) and mechanical behaviors. The microstructure of AAS-SS systems was characterized using X-ray diffraction, thermogravimetric analysis and nitrogen adsorption techniques. The shrinkage mechanism and quantification approach of the AAS-SS systems were discussed, in addition to a sustainability assessment. The results indicate that the 7-day autogenous shrinkage of AAS paste was decreased by 16 %, 35 % and 42 % when SS was incorporated by 15 %, 30 % and 45 % respectively, owing to the obviously slower hydration and higher internal RH at the early age. Meanwhile, the inclusion of SS substantially mitigates the chemical shrinkage and reduces the pores below 50 nm, thereby significantly decreasing the capillary pressure associated with smaller water-filled pore sizes. Substitutions of blast furnace slag by up to 45 % SS enable to reduce CO2 emissions by 18.4 kg/m3 and decrease autogenous shrinkage by 42 % without obvious compromise in the loss of elastic modulus and compressive strength.