One of the most successful techniques used to increase structural capacity and sustainability in highway construction is cement stabilization. Despite its reported advantages, some disadvantages such as sensitivity to overloading and reflection cracking normally accompany this technique. The aim of this paper is to investigate the effect of recycled steel fibers inclusion on compressive properties of cement-stabilized granular material and to identify the implications of such reinforcement on pavement responses and economic benefits in terms of pavement thickness. The study was undertaken from both laboratory and theoretical points of view. Laboratory investigation was conducted in terms of unconfined compressive strength (UCS), modulus of elasticity and Poisson's ratio. The results indicated that incorporation of fibers reduces density and UCS of the composite while stiffness modulus and Poisson's ratio were found to be increased as a result of such modification. The failure pattern observations revealed better intactness and integrity of specimens as fiber content increased. From a UCS point of view, the use of lower fiber content (0.25% by volume of aggregate) produced better properties. However, the reduction in the UCS due to reinforcement inclusion can be considered small compared with the reported improvement in tensile properties. Furthermore, incorporating fiber in a cement-stabilized base helps to reduce the tensile strains at the bottom of both asphalt surface and cemented base layers and also compressive strain on the top of subgrade. Finally, reinforcing cement-stabilized aggregate with fibers from consumed tires will ensure reduction of the required thickness of cemented base layer and/or overlying and underlying pavement layers.