Constructing embankment over soft to very soft subgrade presents challenges in controlling settlements and maintaining sufficient bearing capacity. Conventional soil improvement techniques, like preloaded sand drains/PVDs, stone columns, etc., offer solutions but are time-consuming. This paper explores the use of geofoam in embankment construction for reducing the dead load over the soft subgrade and thereby minimizing the consolidation settlement. Geofoam, composed of expanded polystyrene (EPS) blocks, has a density of approximately 1% of traditional soil fill. Thus, the possibility of shear failure of the subgrade soil is reduced. Additionally, geofoam embankments offer a faster construction process compared to other soil improvement techniques. Normally, it is covered with a soil layer and sometimes with a geosynthetic sheet with proper anchorage. The use of geofoam in India is almost nil, whereas in other countries its use is widely accepted. The present study consists of a scaled model in the laboratory to quantify the settlement and stress reduction on the soft subgrade due to the use of geofoam. Geofoam of density 19 kg/m3, i.e., EPS 19, was used in the experimental model. Dial gauges were used on the top surface of the embankment to measure the settlement, and soil pressure cells were used at the bottom of the embankment to note the pressure reduction. The experimental results were validated using finite element-based software PLAXIS 3D. Finally, a numerical model is developed using PLAXIS 3D software to perform parametric studies. This study will provide a deeper understanding of the factors influencing the performance of geofoam embankments on soft clay subgrade in the Indian context.