Laboratory and field tests have indicated that the addition of additives like lime, cement, fly ash, etc., increases the strength and stability of the soil. But the cost of these stabilizers has increased in the recent times. This research was conducted to determine the geotechnical properties of loose soil treated with bagasse ash and lime to obtain a cheaper and more effective replacement for conventional soil stabilizers. The geotechnical properties of loose soil alone were investigated for various curing periods. Liquid limit and plastic limit of the samples containing loose soil and bagasse ash ranging from 5 to 40% replacement were investigated. The unconfined compressive strengths of these mixes were also determined with different curing periods. It was observed that the addition of various percentages of bagasse ash to the loose soil increases the strength marginally on immediate testing. The increase in the strength was comparatively higher for the curing period of 28 days. It was found that 15% Bagasse ash and 2% lime was the optimum replacement. An increase in strength was observed from 33 to 66% of the sample for the optimum dosage of bagasse ash alone and 36–79% when the soil was treated with the optimum percentage of bagasse ash and lime with the curing period varied from 0 to 28 days. Ultimately, based on the findings of the experiments, it is determined that using industrial wastes, such as bagasse ash, for construction is far more efficient in terms of cost, time, stability, and strength.