The study investigates the application of steel slag as an innovative material for compaction piles in the stabilization of soft soils, offering an eco-friendly alternative to conventional gravel compaction piles (GCPs). Through a comprehensive series of laboratory tests, field experiments, and numerical simulations, this study evaluated the performance, environmental impact, and long-term behavior of steel slag compaction piles (SSCPs). The key findings revealed that steel slag not only provides immediate soil improvement comparable to gravel but also exhibits significant time-dependent increases in strength and stiffness. Standard Penetration Test (SPT) N-ratios (N1/N0, where N1 = N value after improvement and N0 = N value before improvement) were similar for soils reinforced with SSCPs and GCPs after 0 months, but were about 30 % higher in SSCP-reinforced soils after 3 months. This increase was attributed to the cementation of steel slags, suggesting that the compaction pile with increased stiffness due to cementation acts as a compaction pile with an increased area replacement ratio (α). Environmental assessments confirmed that steel slag meets regulatory standards for soil contamination, positioning it as a sustainable option. Settlement analysis after embankment construction showed reduced and more uniform settlements with SSCPs, suggesting superior load distribution capabilities. Finite element analysis compared the behavior of SSCP-reinforced soils at varying α and stiffness of compaction piles, confirming that the cementation of steel slag produces an effect equivalent to increasing α in uncemented piles, thus enhancing the reinforcement effect.