Major infrastructure projects require significant amount of natural materials, often followed by the soft soil stabilization using hydraulic binders. This paper presents the results of a laboratory study of alternative waste materials (fly ash and slag) that can be used for earthworks. Results of high plasticity clay stabilization using fly ash from Serbian power plants are presented in the first part. In the second part of the paper, engineering properties of ash and ash-slag mixtures are discussed with the emphasis on the application in road subgrade and embankment construction. Physical and mechanical properties were determined via following laboratory tests: Specific gravity, grain size distribution, the moisture-density relationship (Proctor compaction test), unconfined compressive strength (UCS), oedometer and swell tests, direct shear and the California bearing ratio (CBR). The results indicate the positive effects of the clay stabilization using fly ash, in terms of increasing strength and stiffness and reducing expansivity. Fly ashes and ash-slag mixtures have also comparable mechanical properties with sands, which in combination with multiple other benefits (lower energy consumption and CO emission, saving of natural materials and smaller waste landfill areas), make them suitable fill materials for embankments, especially considering the necessity for sustainable development.