Accelerated urbanization worldwide in the twenty-first century has led to the depletion of quality natural aggregates, including in India. Concurrently, the country faces significant challenges due to its rapid industrialization, generating billions of tonnes of waste annually, which are dumped in landfills on precious land and causing harm to the nearby population. This study focuses on repurposing industrial wastes such as overburden (OB), fly ash (FA), basic oxygen furnace slag (BOF) from the mining industry, thermal power plants and steel plants, respectively, stabilized with a small amount of cement to develop effective and environmentally friendly base/subbase pavement layers stabilized with cement (CTSB/CTB) aligned with IRC:37-2018 guidelines. Optimization of the blend was done using response surface methodology (RSM). The findings reveal that a highly durable mixture consist of OB (50%), slag (40%), fly ash (5%), cement (5%) achieves 4.84 MPa 7-day UC strength (UCS), 0.25 Poisson’s ratio, meeting IRC specifications and demonstrates sustainability in the long run. Furthermore, the leaching study indicated low to undetectable levels of heavy metals from the treated waste material satisfying the IS:10500-2012 guidlines. In summary, integrating industrial waste materials into CTSB/CTB layers enhances waste management and provides alternate construction materials for flexible pavements, thus conserving resources, reducing overall construction costs significantly, and promoting environmental sustainability.