Expansive soils undergo high volume change due to cyclic swelling and shrinkage behavior during the wet and dry seasons. Thus, such problematic soils should be completely avoided or properly treated when encountered as subgrade materials. In the present study, the biomedical waste incinerator ash and lime combination was proposed to stabilize expansive soil. Particle size analysis, Atterberg limits, free-swell, compaction, unconfined compression strength, and California bearing ratio tests were conducted on the natural soil and blended with 3%, 5%, 7%, 9%, and 11% biomedical waste incinerator ash (BWIA). The optimum content of BWIA was determined based on the free-swell test results. To further investigate the relative effectiveness of the stabilizer, 2% and 3% lime were also added to the optimum soil-BWIA mixture and UCS and CBR tests were also conducted. In addition, scanning electron microscopy (SEM) tests for representative stabilized samples were also conducted to examine the changes in microfabrics and structural arrangements due to bonding. The addition of BWIA has a promising effect on the index properties and strength of the expansive soil. The strength of the expansive soil significantly increased when it was blended with the optimum content of BWIA amended by 2% and 3% lime.