As a widely used material in underground engineering, clay–cement slurry grouting is known for its initial poor anti-seepage and filtration capacity, the low strength of the resulting stone body, and its tendency towards brittle failure. To explore efficient and environmentally friendly grouting materials, industrial-grade graphene oxide (GO) was incorporated into a clay–cement slurry to create a new type of slurry called a GO composite. These GO composites were then utilized to reinforce fractured formations. Uniaxial compression tests, shear strength tests, permeability tests, and electron microscopy scans were conducted to investigate the strength, permeability, and microscopic features of the GO composite-reinforced fractured formations. Furthermore, the optimization effect and application prospects of graphene oxide on clay–cement slurry materials were evaluated. The experimental results demonstrated that the modified slurry effectively improved the compressive strength (increased by 7.2% to 32.5%) and shear strength (increased by 28.6% to 105.3%) of consolidated fractured gravel. By conducting orthogonal experiments with range analysis, variance analysis, and multiple regression analysis, it was shown that there was a strong correlation between the consolidated body and three factors influencing the permeability coefficient. Among these factors, the OPC content had the most significant impact on the permeability coefficient, followed by the GO content. Graphene oxide was found to promote cement hydration reactions, guide the growth of hydration products on the surface of graphene oxide nanosheets, optimize the pore structure in grouting materials, and reduce microcracks between the slurry and the fractured gravel interface. Electron microscopy characterization and fractal analysis revealed that the addition of graphene oxide effectively reduced the degree of microdamage during the sample’s failure process. This ensured the integrity of the sample during the unstable failure process, enhanced the material’s toughness, and improved its ability to resist loads.