As the main waste product of iron and steel industry, steel slag possesses considerable cementitious activity, making it a promising alternative to cement in Cement Stabilized Macadam (CSM). However, CSM was inevitably exposed to groundwater and rainwater when served as the pavement base course, leading to concerns over poor early strength and potential pollutant leakage, which are the main factors that may hinder the widespread utilization of steel slag in CSM base. To address these issues, this study investigated the feasibility of using steel slag powder to produce CSM. Steel Slag Powder-Cement Stabilized Macadam (SSCSM) samples were prepared and the hydration products, microstructure, mechanical properties, water damage resistance and heavy metal ions leaching behavior were investigated. The results show that the nucleation effect of steel slag powder accelerates the early hydration, but the C-S-H produced by hydration is not sufficient to form a stable hydration product network, so the microstructure of SSCSM is looser than that of CSM. The addition of steel slag powder improved the shrinkage performance of SSCSM, and the mechanical properties and heavy metal ion leaching concentration of SSCSM meet the engineering application requirements when the steel slag powder replacement level does not exceed 30 %. It was also found that the addition of steel slag powder promoted the development of pores in SSCSM samples after dry-wet cycles, resulting in the reduction of water damage resistance. Compared with conventional CSM, the use of SSCSM can not only reduce 4 % of raw material cost and 23.5 % of equivalent CO2 emission, but also mitigate the heavy metal ions leaching risk associated with steel slag, making it an effective and sustainable solution for steel slag recycling.