Soil stabilization is a process of enhancing the bearing capacity of challenging soil through mechanical or chemical means, which enhances shear strength parameters, which alters the nature of the soil as and when required for the project since the ground soil may not support the imposed structure loads. The available methods to solve this problem are not cost-effective; some are non-sustainable and prove effective only in the long run. This research concentrates on a practical approach for utilizing industrial by-products such as bagasse ash (BA), marble dust (MD), cement kiln dust (CKD), and lime to enhance soil stability, as their disposal poses potential environmental risks. To accomplish this, varying proportions of these waste materials were used to replace soil samples throughout this investigation. Tests for Atterberg limits, modified proctor, shear strength, and unconfined compression were performed on these samples. The findings indicate that the compression strength increases by 53% when 19% of BA and lime are applied in a similar proportion. Additionally, it will decrease the soil’s plasticity due to the filler effect of the blended particles. It is noted, however, that CKD provided an optimum moisture content (OMC) of 13.7%. The best ratio identified at the conclusion of this study is 11% of MD, which yielded the highest maximum dry density among all the additives and resulted in a 40% reduction in cost compared to traditional methods.