The rapid urbanization in India has led to a concerning shortage of natural resources such as stone aggregates and sand. To address this issue and promote environmental sustainability, it has become crucial to recycle existing waste products for effective utilization in road development. This study focuses on the full depth reclamation (FDR) method, which involves reconstructing existing roads using reclaimed asphalt pavement (RAP) material as a cement-treated base (CTB) layer. The study examines the blending of RAP material with varying proportions of cement content. Several tests were conducted in the laboratory to evaluate the efficacy of the blended material, including determining the maximum dry density (MDD), optimum moisture content (OMC), unconfined compressive strength (UCS), and wet–dry durability. The findings indicate that a cement content of 5% provides the necessary strength for CTB usage, meeting the criteria of a 7-day UCS exceeding 4.5 MPa, as per IRC 37, 2018. Furthermore, after subjecting the optimized test specimen to 12 cycles of wet-dry testing, it was observed that the mass loss was approximately 3%. This outcome demonstrates the durability and longevity of the blended material. In conclusion, the application of the full depth reclamation method, incorporating reclaimed asphalt pavement (RAP) material as a cement-treated base (CTB) layer, presents a viable solution to address the scarcity of natural resources caused by rapid urbanization in India. The study's findings highlight the effectiveness of the blended material, with 5% cement content offering the desired strength for CTB application, alongside satisfactory durability properties.