The present investigation explores the potential of alkali-activated slag as a novel method for stabilizing and enhancing the mechanical properties of loose sandy soils. To achieve this, unconfined compression tests were performed on samples with varying slag content, activator solution parameters, and curing conditions. A predictive model was developed to estimate UCS based on these factors. The microstructural analyses using field emission scanning electron microscopy and energy-dispersive X-ray spectroscopy elucidated the development of gels contributing to improved mechanical properties of the treated samples. Additionally, UCS tests demonstrated that increased slag content, activator concentration, and curing time significantly increase strength, stiffness, and brittleness. Notably, the findings show that samples treated with alkali-activated slag achieved substantially higher strength than those treated with ordinary Portland cement. These findings highlight the superior efficiency of this method in soil stabilization.