This study focused on evaluating dune sand stabilized with lime and volcanic ash as base course materials in engineering construction. Dune sands are found in Saudi Arabia in huge quantities. Due to the high demand for construction materials, this makes them highly suitable for construction. A testing program was designed to investigate the effect of adding different percentages by weight of lime (L: 0, 2, 4, and 6%) and volcanic ash (VA: 0, 1, 3, and 5%) on the engineering properties of the stabilized mixture. Unconfined compressive strength (UCS) and California bearing ratio (CBR) tests were conducted. In addition, Raman spectroscopy and laser-scanning microscopy (LSM) tests were performed to explore the chemical characteristic, packing, and structure of the mixture. The results showed that the UCS, CBR, and the Young’s modulus (Es) of the treated dune sand increased with the increase in percentage of both stabilizers. Furthermore, LSM images of mortar blended with intermediate L-to-VA blend ratio ≈0.55 (L: 6% and VA: 5%) exhibit compact packing of sand grains, indicating strong adhesion and higher cementing value. The results of the study are promising and encourage using the treated dune sand in engineering construction even with a low percentage use of lime (2%) and volcanic ash (1–3%) as stabilizers.