Coral sand is the main filling material for the island–reef foundation. Under tidal actions, the saturation (Sr) of coral sand layers varies with the specific depths in the reclaimed foundation. Studying the Sr effect of coral sand’s mechanical behaviors is crucial for the stability of the reclaimed foundation of island–reefs. In this study, a “quantitative injection method” was designed to prepare coral sand with saturation ranging from 90% to 100%, and unconsolidated–undrained (UU) triaxial shear tests were conducted on coral sand under different effective confining pressures (σ3′). The results indicated that the stress–strain curves of coral sand under various conditions were of the strain-softening type. When σ3′ = 200, 400, 600, and 800 kPa, the shear strength of coral sand decreased exponentially by 13.1, 9.1, 16.8, and 15.2%, respectively, with the increase in Sr from 90% to 100%. As Sr rose, the internal friction angle (φ) dropped by 3.77°. The cohesion (c) was not significantly affected by Sr compared to φ. In consideration of the physical susceptibility of coral sand to breakage, relative breakage ratio (Br) and modified relative breakage index (Br*) were introduced to evaluate the particle breakage behaviors of coral sand samples with different Sr levels in the triaxial shear process. It was found that Br and Br* increase linearly with increasing Sr; the effect of Sr on the particle breakage of coral sand weakens significantly when σ3′ is sufficiently large. The median particle size (d50) of coral sand decreases with increasing Sr, and presents a negative linear correlation with both Br and Br*. Based on comparing the strength and particle breakage characteristics of coral sand samples with varying Sr levels, this study suggests that 92.5% should be considered as the Sr value of coral sand available for testing.