Granular lateritic soil is commonly used for road construction in humid tropical and subtropical regions. However, the high plastic clay content and poor particle distribution of some laterite materials make them unsuitable for bases and subbases. Lime treatment is a widely used method for improving problematic lateritic soil, and liquid ionic stabilizers are considered an environmentally friendly solution for reinforcing such soils. However, using only lime or only stabilizers may not be optimal. This study investigated the effect of treating granular lateritic soil with hydrated lime and a new liquid stabilizer, Zhonglu-2A (ZL-2A). A series of indoor tests, including compaction, California bearing ratio, and unconfined compressive strength tests, were conducted to evaluate the effects of hydrated lime content and stabilizer content on the mechanical properties, mineralogical composition, and microstructure of the soil. The results show that an increase in hydrated lime dosage increases the optimal moisture content and decreases the maximum dry density. The CBR of lime-stabilizer-treated laterite was at least 2–3 times higher than that of the only-lime-treated soil. The highest CBR was observed in samples treated with 0.2‰ ZL-2A stabilizer. The sample with 6% lime and 0.2‰ ZL-2A stabilizer exhibited the highest unconfined compressive strength, and a nearly linear increase was observed between the unconfined compressive strength and CBR. Further investigation of the stabilization mechanism using X-ray diffraction mineralogy analysis and scanning electron microscopy revealed that the inorganic substances of the ZL-2A stabilizer and the hydrated lime provided the basic conditions for the reaction and generated cementitious hydrates on the clay particles. The mixture of granular lateritic soil and hydrated lime was wrapped by the ZL-2A stabilizer, forming a complex spatial structure and improving the strength of the soil. To improve the bearing capacity of subgrades in actual subgrade engineering, a combination of a liquid ionic stabilizer and lime should be used to treat laterite.