Mud blocks are widely accessible, reasonably priced, and environmentally beneficial building materials. Many rural populations in Ethiopia use locally available dirt, straw, and water in unknown amounts to hand-pack mud onto wooden frames to build walls. Because of their poor strength and endurance, walls built using this old approach frequently deteriorate under wind and rain. This research addresses these challenges by enhancing the compressive strength of mud blocks made from locally available earthenware clay soil through the addition of cement, lime, and cereal straw ash. Experimental results showed that adding 10% cement increased compressive strength from 1.73 MPa (for clay and sand only) to 2.98 MPa an improvement of over 72%. Similarly, 10% lime and cereal straw ash improved strength to 2.09 MPa and 2.32 MPa, respectively. When cereal straw fiber was added to the mix, it further boosted compressive strength, with the best result of 2.66 MPa achieved using 8% cement and cereal straw fiber. These findings demonstrate that optimized mixtures significantly enhance load-bearing capacity and durability. This study provides a scientific basis for producing durable, sustainable mud blocks and encourages the construction industry to adopt cost-effective, locally sourced materials. Ultimately, this approach offers a pathway to modernize traditional housing, reduce dependency on wood and concrete, lower constructions costs, and promote resilient rural homes.