Earth pressure balance shield (EPBS) has become the mainstream construction method for metro tunnels in China, which inevitably generates a large amount of discharged soil, putting enormous pressure on the environment and the cost. In order to realize the resource utilization of shield dregs, this paper explored the feasibility of recycling the waste silty clay as a soil conditioner in EPBS tunnel construction. Mixtures of bentonite, wasted silty clay, carboxymethyl cellulose (CMC), and tap water in different ratios were prepared. Defining the substituted ratio as the mass ratio of silty clay to (bentonite + silty clay), the effect of the substituted ratio on the apparent viscosity, flow curve, rheological model and physical stability of bentonite-silty clay composite slurry were investigated. Furthermore, the relationship between slurry microstructures and macroscopic rheological properties was revealed by scanning electron microscopy (SEM). The results show that the constitutive relationship of bentonite slurry (0% substituted ratio) can be well described by Herschel-Bulkley model. The silty clay has a deteriorating effect on the rheological behavior and physical stability, and changes the flow pattern of the composite slurry. Microscopically, CMC makes the clay particles in slurries form agglomerates with larger particle sizes, and can absorb excess free water from the slurry, thus significantly increasing the yield stress and apparent viscosity. The recycling scheme proposed in this study can not only greatly reduce the procurement cost of raw materials, but also eliminate the transportation and disposal costs of discharged soil, which has significant environmental benefits and promising application prospects.