Construction of high-speed railway subgrade on loess soils in the Loess Plateau is risky because such soil is susceptible to differential settlements. Various soil-improvement methods have been used to enhance the mechanical properties of loess. Lime-ash soil and cement-lime soil are the most commonly used methods in the improvement of loess subgrade, while few studies have been found on loess subgrade improvement by using composite material consisting of traditional materials and new materials. A series of direct shear tests and unconfined compressive tests were conducted on the loess specimen with the addition of three kinds of composite materials: traditional material cement, new material polypropylene fiber and SCA-2 soil curing agent. The numerical simulation was conducted on loess subgrade in an actual engineering practice. The experimental results show that cement, polypropylene fiber and SCA-2 soil curing agent can effectively improve the shear strength and compressive strength of loess, and the influence degree is cement > fiber > curing agent. Additionally, based on the relative strength characteristics of the improved loess, an optimal improvement scheme for the composite-material-modified loess was obtained: 16% cement content + 0.5% fiber content + 4% curing agent content. The numerical simulation results revealed that the compressive strength index of the improved loess has a significant impact on the subgrade settlement, and the optimal improvement scheme obtained from comprehensive analysis can effectively improve the settlement of high-speed railway subgrade under vibration load.