Construction of road embankments in peatlands commonly involves replacement of the peat with a fill-up soil of an adequate load-bearing capacity. This usually requires a lowering of the water level, turning a peatland from a carbon sink to a source of greenhouse gases. Thus, alternatives are sought that are less costly in both economic and ecological terms. Mass-stabilization technology can provide a cheap substitute for Portland cement. Calcareous ashes (waste materials), supplemented with pozzolanic and alkali additives to facilitate and accelerate the setting and hardening processes, are attractive alternatives to soil excavation or replacement techniques. Silica fume and waterglass were used as pozzolanic agents and KOH as a soil-alkalizing agent. X-ray fluorescence (XRF), Fourier-transform infrared spectroscopy (FTIR), X-ray diffraction (XRD) analyses and stress–strain tests were performed for the hardened samples. Crystallization of alkali feldspars was observed in all test samples. Comparable hardening of peat soil was achieved for both ashes. It was shown that the ashes of Estonian kukersite (oil shale) from both pulverized firing and a circulating fluidized bed incineration process (produced in energy sector as quantitatively major solid waste in Estonia) can be used as binding agents for peat stabilization, even without the addition of Portland cement. Hardened peat soil samples behaved as a ductile material, and the cellulose fibers naturally present in peat gave the peat–ash composite plasticity, acting mechanically in the same way as the steel or glass fiber in ordinary reinforced concrete. The effect of peat fiber reinforcement was higher in cases of higher load and displacement of the composite, making the material usable in ecological constructions.