River and lake dredging projects inevitably produce significant quantities of wastewater and sediment. This accumulation results in dredged soil with high moisture content, characterized by low strength, rendering it unsustainable for use. To facilitate environmentally friendly utilization of wastewater and sediment, solidifying agents and basalt fibers are introduced to solidify the wastewater within the dredged sediment. This process transforms the wastewater, sediment, solidifying agents, and basalt fibers into a novel, strengthened material. This transformation allows for their application as stabilized soil for engineering endeavors. Indoor experiments and scanning electron microscope analyses were performed to examine the deformation characteristics of fiber-stabilized soil and analyze its micro-mechanisms. Research findings suggest that as the curing age increases, the curing agent’s reaction becomes more comprehensive. Fibers have the potential to ameliorate soil damage. The proposed binary-medium model’s applicability and accuracy were validated through the analysis of triaxial test results employing the reinforcement principle. These findings establish a theoretical foundation for the resourceful utilization of wastewater and sediment.