Grouting has been successfully applied in numerous ground improvement applications to strengthen the foundation and to lower the settlement while increasing the load carrying capacity. In this study, the improvement in bearing capacity and settlement reduction was studied when loose sand was grouted with cement-coal ash slurry prepared in the proportion of 1:2. Grouts are prepared with varying water content of 7:1, 6:1, 5:1, 4:1 and applied in sand bed by varying the grout pressure. The pressure is varied as 100, 200, 300, 400 kPa. The enhancement in strength for the treated soil in-terms of bearing capacity and decrease in settlement was studied by conducting laboratory model tests. Mild steel footing of size 75 × 75 × 10 mm is placed over the surface of sand and subjected to vertical loading for both untreated sand and grouted sand. The results of the load-settlement analysis showed that, the settlement of footing decreased to 71% and the load carrying capacity increased to about 3.77 times on cement-coal ash grouted sand applied at a pressure of 300 kPa and an optimum water content ratio of 4:1. Pressure above 300 kPa showed decrease in ultimate bearing capacity as the applied grouts bulged inside the grout hole leading to incomplete formation of grout column in the sand bed.