The utilisation of soil stabilization techniques employing binders like lime or cement enables the use of soils that are classified as disposable, thereby reducing the need for landfills and the consumption of natural resources. However, the production of lime and cement results in significant CO2 emissions. Therefore, the application of industrial by-products (IBP) for stabilizing expansive soils presents an opportunity to minimise the use of traditional binders. This study investigates the geotechnical, mechanical, mineralogical, and environmental properties of four IBP (biomass bottom ash, biomass fly ash, steel slag, and mixed recycled aggregate) combined with a silica-based nanomaterial for road layer applications. The technical feasibility of the use of IBP was demonstrated, especially in combination with nanomaterials, allowing a 66 % reduction in the percentage of added lime, obtaining significant improvements with minimal plasticity and swelling index and bearing capacity CBR values higher than 25 %, applying BBA, BFA and SS. An environmental assessment of leachate analysis was performance, showing an immobilization of heavy metals that makes the application of IBP feasible. In addition, a life cycle analysis study showed the environmental benefits of applying IBP, such as a 50 % reduction in CO2 emissions due to the reduction of lime, resulting from the use of these materials, thus promoting more sustainable economic models.