A developing country like Bangladesh is establishing many power plants where coal is being used as a primary fuel. The generation of coal waste is increasing with the mining of coal, which may cause an adverse environmental effect. So, it is required to be managed in a proper manner, such as reuse and recycle the coal waste. The objective of this study is to investigate the significance of coal waste used as a road subgrade. Due to the lack of some physical and strength properties, the waste cannot be used directly as a subgrade. So, the investigation was done to stabilize the fresh coal waste with different percentages of fly ash such as 0%, 10%, 12% and 15% to justify the suitability of its intended use. It is found that with the increasing percentages of fly ashes, the plasticity index reduces significantly. With the addition of fly ash, the dry density increases, while the optimum moisture content decreases significantly. After analyzing the test result, it is found that coal waste with 15% fly ash having unconfined compressive strength and CBR value is 17.79 psi and 23.12% respectively which is sufficiently significant for use as road subgrade.