Calcium-based materials, such as cement, lime, or combinations thereof, are usually employed for chemical stabilization of soil. However, these conventional binders have come under scrutiny owing to their elevated expenses and adverse environmental repercussions inherent in their manufacturing processes. Complete replacement of conventional binders is possible with the usage of alkali-activated materials or geopolymers, which can be manufactured by utilizing industrial byproducts like fly ash, blast furnace slag, etc. This review article focuses on the utilization of geopolymers for soft clay stabilization with a specific focus on deep soil mixing applications. A brief description of different types of activators and precursors used for geopolymer and its properties is discussed. The study covers the influence of parameters like type of soil, soil properties, type and amount of precursor, type and concentration of activator, activator-binder ratio, etc., on strength, durability, leachability and changes in the microstructure of improved soft clay through element-level tests and laboratory scale model tests. The difference between one-part and two-part geopolymer manufacture and its applications will also be discussed. As pozzolanic materials do not exhibit reactivity on their own, partial replacement of conventional binders will only be possible. Thus, alkali-activated materials provide a promising and sustainable alternative to cement and lime, due to the availability of abundant raw materials and its lower energy usage and CO2 emission. Also, the utilization of industrial by-products for ground modification in the form of geopolymer will solve problems associated with its disposal.