Loose sand possesses quite low shear strength behaviour and bearing capacity which are not desirable soil properties for constructing any civil engineering structures. Further, saturation of loose sand subjected to various loading such as traffic and dynamic loading lead to trigger the ground sinking, subsidence and sliding. Similar types of issues are observed frequently in hilly region particularly during highway construction. Further, several techniques have been adopted to modify the properties of loose sand into desirable account by using reinforced earth wall, retaining structures, etc. It has been reported that these structures alone could not able be to control the sinking and liquefaction issues upon saturated of ground due to lower cohesion of fill material. In the present study, real issue of Tura-Dalu Road of Meghalaya state of India at Ch: 115 + 290 to 115 + 350 has been selected for stability analysis of length of sinking and sliding zone about 10 m along highway. Detailed study of behaviour of subsoil strata and geotechnical properties of material have been examined. Further, potential of two different grouting materials namely Silica Sol, and Polyurethane foam to improve the shear strength behaviour of soils has been investigated in laboratory. Further, numerical analysis of slope at Ch: 115 + 290 to 115 + 350 for both untreated and treated ground with retaining structures has been performed by limit equilibrium method using Slide2 software. The results revealed that application of only grouting or retaining structure is not found suitable to control the sinking, subsidence and sliding issue. However, improvement of grouting along with masonry or, cantilever structures have shown better performance to resolve the stability issue of site.