This paper describes the design of a new interlocking masonry system, the production of designed interlocking units and mechanical properties of interlocked masonry assemblages with mortar. In this proposed system, units have horizontal and vertical locks to integrate the units to the wall and have a channel to enable the use of horizontal reinforcements in the wall. Using these units, unfilled, filled or reinforced walls can be constructed with or without mortar. In the production of the interlocking units, it was decided to use foamed concrete. 12 trial productions have been carried out at different mix proportions to obtain the optimum concrete mix. At the end of the mentioned productions, the units were produced with foam concrete which is selected as the most suitable in terms of compressive strength and specific gravity. Then, axial compression, diagonal tension and bed joint shear tests were carried out to determine the mechanical properties of the interlocked masonry assemblages with mortar. Results from the tests showed that interlocks designed to strengthen the system against shear stresses by creating discontinuity throughout the joints have been successful to achieve their aim. Obtained data will enable structural analysis of walls to be constructed with these new units.