A celadonitic clay deposit is located ∼40 km north-west of Yazlıca-Kütahya (Türkiye) and has promising reserves for ceramic production. To evaluate the potential use of this region, 10 representative clay samples were collected and characterized using X-ray diffraction (XRD), polarized-light microscopy (PM), X-ray fluorescence (XRF), differential scanning calorimetry (DSC), Fourier-transform infrared (FTIR) spectroscopy and scanning electron microscopy with energy-dispersive X-ray spectroscopy (SEM-EDS). According to the Chemical Index of Alteration and Chemical Index of Weathering, the celadonitic clay samples were formed by strong chemical alteration of the Kızıltepe volcanic rocks occurring in the study area. Based on XRD data, SEM-EDS data and chemical and thermal analysis results, the primary minerals present were celadonite-Al, montmorillonite and nontronite in the clay samples formed by the weathering of basaltic rocks. The clay samples were used in thermal and physical tests. Firing properties, including water absorption, dry shrinkage, firing shrinkage, total shrinkage and glaze adhesion, were determined. The white clay specimens are suitable for more decorative and less load-bearing applications, having high porosity and low strength. The green clay samples, however, are ideal for technical and industrial ceramics, having an extremely compact structure and high strength. The properties of these two clays are beneficial for application in different areas in terms of their mechanical and ceramic performance. Additionally, the representative green celadonitic clay samples were used in recipes for opaque, transparent and matte glazes, creating artistic glaze effects for pigments. Hence, the green clay samples could be used as a ceramic pigment.