Soil stabilization problems like liquefaction, bearing capacity, permeability, excessive settlement and swelling can be solved by improving soil’s engineering properties by using various methods. The use of fly ash as a stabilizer has become popular in recent years since it is eco-friendly and effective on soil stabilization, especially for fine-grained soils. This study investigated the reuse of fly ash as a stabilizer (5–25% by weight) and cement (constant 3% by weight) as an activator to enhance the geotechnical properties of poorly graded sand (SP). Standard proctor tests were conducted to determine optimum water content and maximum dry unit weight, followed by direct shear box, falling head permeability and CBR tests at the determined optimum water content. Direct shear box experiments were carried out at two relative densities (30% and 80%) and CBR experiments were performed after 7 and 28 days of curing time. The results demonstrated that the addition of fly ash and cement improved the geotechnical properties, including shear strength, permeability and bearing capacity of the fine sand soil.