This paper presents the potency of bio-polymer and industrial slag for improving the sandy soil properties of Northeast India. This experiment has been conducted to observe the difference between the change in the strength of the treated and untreated soil samples. Bio-polymer and industrial waste slag used in this experiment are Xanthan gum (XG) and Ground Granulated Blast furnace slag (GGBS). For this research, GGBS is mixed with the soil sample at the range between 0 and 10%. After obtaining the optimum percentage of GGBS, it is further mixed with XG in a ratio between 0 and 2.5% to the weight of dry soil. The laboratory tests conducted for the soil samples are Particle size analysis, Index property, Specific gravity, Standard proctor compaction test, Unconfined compressive strength (UCS), and California Bearing Ratio test (CBR). The UCS test is conducted at the curing period of 0, 7, 14, and 28 days. It is observed that when the XG percentage is increased beyond 1.5%, the value of MDD decreases while the value of OMC increases. From the result, it is observed that maximum strength in the UCS test is achieved when 5% of GGBS is mixed with 1.5% of XG. In comparison, the CBR result of the soaked and unsoaked soil sample added with (1–1.5%) of XG and 5% of GGBS showed an increment in the CBR value. XG enhances the soil properties and the combination of both admixtures can be used in soil stabilization.