Raising of the Mangla Dam in Pakistan submerged about 15,780 acres of land, resulting in the relocation of 8020 inhabitants to a newly developed town named New City. The new site, consisting of 1300 acres, is in the sub-tropical zone and comprises badland topography. The parent soils (Siwalik clay) pose infrastructure serviceability issues, causing immense loss to property. The study aims to improve the properties of Siwalik clay (base soil) using industrial wastes like marble and glass powders (5 to 20%) and polypropylene fibers (0.25 to 1.25%) as modifiers. Laboratory tests including grain size distribution, Atterberg limits, standard Proctor compaction, unconfined compression, indirect tensile strength, swell potential, and California bearing ratio were conducted on the control and modified clay samples. The results showed that unconfined compressive strength (UCS) and swelling strains (SS) were increased by 43% and 8% at 1.57 kPa pressure with 15% replacement of marble powder. However, the addition of the 20% glass powder and 0.5% polypropylene fibers not only improved UCS by 110% and 39%, but also reduced SS by 27% and 86%, respectively. The capital construction cost of 1 km long road with modified subgrade using 15% glass powder was reduced by 16% whereas it increased for marble powder and polypropylene fibers by 22% and 17%, respectively. All modifiers had very low hazard to adjoining aqueous environment. Conclusively, glass powder and polypropylene fibers can be used as environmentally-friendly soil improvement modifiers, leading towards sustainable solutions of the serviceability problems.