The rapid urbanization worldwide has led to a significant accumulation of sawdust, necessitating sustainable disposal alternatives. This study explores the potential of sawdust ash (SDA) as a soil improvement agent through extensive experimentation, including California bearing ratio (CBR) and unconfined compression strength tests. The results demonstrate a substantial enhancement in both CBR and unconfined compressive strength upon the addition of SDA. Notably, the CBR values fall within the recommended limits for Highway sub-base and sub-grade by the Asphalt Institute. Consequently, this research concludes that SDA, an industrial waste, proves to be a cost-effective and effective stabilizing agent for clayey sub-grades, with the potential for further improvement when combined with bonding materials like lime. This presents an eco-friendly solution for reducing construction costs in road development, particularly in rural areas.