The utilization of waste fly ash in road construction is primarily confined to its use in embankment filling or as a stabilizer when combined with lime and cement. Its application in structural pavement layers, such as the base and subbase, faces a challenge due to the high volume of fine particles, which renders it brittle when stabilized. In this study, fly ash was blended with stone dust and aggregated to enhance its gradation. Subsequently, it was stabilized with cement to bolster its strength, rendering it suitable for pavement use. Additionally, polypropylene (PP) fibers were introduced to mitigate the brittleness of the mixture. An extensive experimental investigation was conducted to assess the strength and stiffness properties, including compressive strength, indirect tensile strength, flexural strength, cyclic indirect tensile modulus, and flexural modulus of fiber-reinforced cement-stabilized mixtures of fly ash, stone dust, and aggregate. The experimental results reveal that the addition of PP fibers up to 0.25 wt.% enhances compressive strength, but any further increase in fiber content leads to a reduction in strength. However, indirect tensile strength and flexural strength show improvement, with an increase in fiber percentage up to 0.5 wt.%. It was observed that cement content plays a dominant role in stabilizing these materials. Appropriate relationships have been established between strength and modulus parameters for stabilized mixtures. Based on the strength and stiffness study, a combination of 70% fly ash and 30% stone dust aggregate with 6% cement can be considered for the base layer. Regarding the behavior of indirect tensile strength and flexural strength, an optimum fiber percentage of 0.35% is recommended.