Nepal, having flimsy topography with divergent weather conditions, slope stability maintenance has been challenging in almost every domain of the country. Retaining walls have been practiced for many years to retain the mass strata in the backfill. Based on different studies, this paper shows the effectiveness of scraped tires, to increase the coping capacity of ML (Inorganic silts of low plasticity) soil type against geohazards caused by static loadings disturbing the slope stability. The use of waste tire shreds as compressible inclusion between backfill and retaining wall can help in the emerging issues of their proper management and disposal. FEM-based PLAXIS 2D has been used to evaluate the performance of a conventional gravity retaining wall, under static loading. In our study, the soil type of backfill and foundation under both were found to be ML soil type based on USCS (Unified Soil Classification System). For the quantification of the use of cushions made up of tire shreds, comparisons were made for the case with and without tire shreds, as well as by varying the thickness of tire shreds to find the optimum thickness. Results show the use of tire shreds in the backfill considerably reduces the total stress and horizontal displacement by 45.47 and 44.64% respectively with the thickness of the compressible inclusion as 50 mm which is found to be the optimum thickness. This study shows the technical as well as environmental sustainability that can be generated by the use of tire shreds as compressible inclusion between retaining walls and backfill.