Fly ash, an industrial by-product, creates a hazard to the environment by contaminating soil as well as water when disposed of by dumping on the ground. The aim of our work is to utilize fly ash to enhance the properties of clay soil, to increase load-carrying capacity, and to reduce settlement. Unconfined compressive strength (UCS) test was performed for different combinations of fly ash, lime, and clay soil to determine the optimum mixture. 8, 14, and 28 days UCS values were determined for all the combinations from which the optimum was found to be 23% fly ash, 2% lime, 75% clay soil, and 38% water content. A test tank of dimensions 1000 × 1000 × 1000 mm was filled with soft cohesive soil to prepare a bed of 600 mm thick. A load test was performed on a shallow footing of size 200 x 200 mm placed over the soft cohesive soil bed. Then, the fly ash-lime-clay stabilized layer was prepared at optimum proportion and placed over a deep-seated cohesive soil bed at different thicknesses such as 1/4B, 1/2B, 3/4B, and B, where B is the width of the footing, i.e., 200 mm. Load tests were conducted for all the cases and the load-settlement graphs were plotted. The ultimate loads were determined using the double tangent method. The increase in ultimate load for the shallow footing placed on the stabilized soil layers of thickness 1/4B, 1/2B, 3/4B, and B over the deep-seated cohesive soil bed was observed respectively to be 1.81 times, 2.03 times, 2.7 times, and 8.11 times more than the unstabilized cohesive soil bed. The settlement under the ultimate load is observed to be 14 mm when the thickness of the stabilized layer becomes equal to the width of the footing.