With the rapid development of urbanization, the problem of environmental pollution is becoming more and more serious. As a major pollutant, heavy metals have caused serious contamination in soil and groundwater. In order to prevent the diffusion of heavy metals in the soil from industrial sewage, the concept of hybrid-fill layer construction improved by red mud was proposed in this study. This study examines the adsorption capacities of lead and zinc ions and engineering characteristics on red mud-amended soils by direct shear, permeability, adsorption, desorption batch and column tests. Two mixing methods, full particle size displacement mixing and partial particle size displacement mixing, were adopted. The results showed that red mud effectively increased the adsorption capacity of soil to heavy metal ions, and the desorption rate of ions after adsorption was less than 3%, which had good anti-desorption ability. The optimum content of red mud in hybrid-fill material can be determined as 20%. The direct shear test showed that the internal friction angle of hybrid-fill material was 38.9°, and the cohesive force was 30.3 kPa, which met the engineering strength requirements of foundation materials. Based on the test results, red mud can be used as a barrier material to prevent heavy metal contamination in industrial sewage from diffusion, which controls not only heavy metal contamination but also consumes industrial by-products.