With the increase in population and urbanization around the world, waste materials have a significant negative impact on the environment; therefore, it is essential to reduce the adverse effects of waste materials on nature through innovative and sustainable solutions. This study aims to reveal the threefold benefits of utilizing waste modified expanded polystyrene (WMEPS) as a soil improvement agent, including the reuse of a waste material by recycling it from nature, obtaining lightweight backfill material, and the enhancement of the compressive behavior of the soil. For this purpose, two different sizes of WMEPS were added to the soil to varying proportions by dry weight of the soil (i.e., 0.5%, 1%, 1.5%, 2%, 3%, 4%, 5%, and 6%) and their unconfined compressive strength (UCS) behavior was experimentally investigated on both 1 and 28 day cured specimens. The results were evaluated in terms of stress-strain behavior, UCS value, UCS increase ratio, normalized energy absorption index, deformability index, and elastic modulus. In addition, the optimum WMEPS participation ratio was determined by linear weighted sum optimization method. As a result, by adding the optimum rate of 5% WMEPS to the soil, the dry density decreased by 15% and UCS increased by 45.22% for the specimen cured for 28 day.