Gypseous soil is a collapsing soil that has not yet been approved as a construction material since its behavior under water, temperature, and pressure is unreliable and unpredictable. Researchers and scientists are always searching for new and creative ways to optimize the benefits of calcium carbide residue (CCR) recycling, which is a byproduct of the acetylene industry and includes a substantial quantity of Ca(OH)2. Therefore, it is a suitable choice for utilization as a chemical stabilizer to improve the engineering features of problematic soils. However, this study explores the potential for enhancing the engineering characteristics of gypseous soil by utilizing (CCR) combined with linear alkyl benzene sulfonic acid (LABSA) to form a geopolymer. The soils utilized in this work are gypseous collapsible soils. Standard tests were conducted on these soils to identify the physical and mechanical characteristics. The geopolymer preparation was accomplished by merging a dilution of LABSA with a geopolymer (solid to liquid), blending the proportions. Three different types of disturbed natural granular-gypseous collapsible soils with different properties and various gypsum contents with percentages of 20%, 35%, and 50% were used. Mixtures of soils containing (2.5%, 5%, and 7.5%) of the geopolymer mix content were made. The single oedometer test (SOT) and the double oedometer test (DOT) were carried out to ascertain the lowest collapse potential value correlated with the ideal geopolymer mixing ratio. The adequate geopolymer percentage was found to be 5% since it resulted in the maximum reduction in collapse potential compared to the natural soil. The direct shear test is employed to ascertain the soil samples’ cohesiveness and friction angle. The results show a slight reduction in the angle of internal friction and increased cohesion (c). For stabilizing gypseous soil in engineering projects, a combination of LABSA and CCR can be utilized as a workable, sustainable, and environmentally friendly substitute.