An increase in the generation of industrial waste materials such as pond ash and brick kiln dust represents a serious threat to the earth’s environment. The waste materials have novel characteristics and therefore their physical, chemical, mineralogical, morphological, mechanical, and toxicity characteristics were determined so that these materials can be incorporated as construction materials based on technical and environmental considerations. The purpose of this study is to utilize the wastes in the stabilization of clay geomaterial to outperform existing problems of inadequate strength and stiffness of the subgrade layer in flexible pavements. Mixtures of geomaterials, containing pond ash, brick kiln dust, and their combination were prepared and important engineering characteristics such as the plasticity, compaction, and strength of the mixtures were examined. The measurement of response to dynamic loading is a pre-condition for the accurate characterization of geomaterials used in pavement construction. Using advanced cyclic triaxial testing, this study evaluates the performance of pond ash and brick kiln dust in increasing the stiffness of the geomaterial under cyclic loading. To stimulate the worst field conditions, the stiffness and strength tests were performed under standard and four-day water-soaked conditions. The implementation of several stress-dependent models for the prediction of stiffness was examined. Pond ash and brick kiln dust were found to be effective in increasing the stiffness and strength of the geomaterial. The wastes were the most effectual when added in combination to the geomaterial. The characterization of the wastes was informative in understanding the governing mechanism prevalent in the waste stabilized mixtures. The toxicity characterization study revealed the non-toxic and non-hazardous nature of the waste materials, permitting their use in the construction of pavements. This study recommends the use of wastes in the subgrade of flexible pavements. Further research is needed for performance evaluation of the wastes on silt and sand geomaterials for their wider application.