Dune sands occupy large parts of Iraq, posing significant challenges for infrastructure building. Geotechnical research and stabilization for dune soils are necessary to determine the engineering features of these soils as a foundation material in consideration of the global growth in construction activities, especially in Iraq. The compressibility and collapsibility of dune soils are key soil features in the design and construction works, which must be carefully analyzed. In this study, selected geotechnical properties, including compaction, compressibility, and collapsibility characteristics, of compacted dune soil samples from the city of Tikrit were evaluated in the laboratory using a specific range of “cement kiln dust (CKD)” concentrations as a stabilizing agent. The amounts of CKD used in this study were 4, 8, 12, 16, and 20% by dry weight of dune soil. The results showed that adding CKD to Tikrit dune soil improved the compaction properties, decreased the compressibility, and amazingly eliminated the collapsibility. The quality of Tikrit dune soils treated with CKD is very high, and it is recommended for use in the construction of geotechnical engineering works.