This study aimed to decipher the influence of red mud on the mechanical properties, pore structure, and microstructure of basic magnesium sulfate cements (BMSCs). The results showed that BMSC prepared with an appropriate addition of red mud exhibited improved mechanical properties and yielded the highest compressive strength of 94.54 MPa after curing for 28 days. Adding red mud reduced the total porosity and optimized the pore structure of BMSC. The microstructure and hydration products of the specimens were examined using X-ray diffraction, scanning electron microscopy, and energy-dispersive spectroscopy. The results illustrate that the addition of 50% red mud did not affect the amount of the main strength phase 5-1-7 produced in BMSC. It could also reduce the residual amount of MgO and the generation of Mg(OH)2. The red mud and the M-S-H gel generated by the reaction between active SiO2 and α-MgO in the red mud together filled the pore structure of BMSC, making its microstructure denser and higher-strength. This study aims to improve the comprehensive use of red mud, and the results show that red mud can improve the mechanical properties of BMSCs, protecting the environment and simultaneously reducing BMSC production costs to create good economic benefits.