This paper presents experimental results of steel beams strengthened with low-density and low-modulus CFRP fabrics, with the objective of, (i) checking the capability of the fabric type CFRP in strengthening; (ii) assessing and understanding the failure modes for design improvement; and (iii) validating the design methods for the practical application. A total of eighteen full-scale 2.5-meter-long beams strengthened with CFRP were tested. The governing failure modes of the CFRP-strengthened steel beams were debonding, rupture, and wrinkling. The experimental moment capacities were compared with the design predictions using the limit state suggested in the ACI guideline and two new design limit states. The comparison of design predictions indicated that the use of the limit state suggested in the ACI guideline unconservatively predicted the design moment capacity while the two new design limit states were conservative. Further, it is evidently assessed that the low modulus CFRP fabric can be used for the strength upgrade of the steel beams. A detailed design example is presented for the CFRP-strengthened steel beam using different limit states for a better understanding of the readers.