The mechanical behavior and strength characteristics of unsaturated fine-grained soils with dual-porosity are of crucial importance in geotechnical designs. Nanyang fine-grained soils have been selected as typical dual-porosity structure soils to perform experimental tests under a wide range of suction and different initial densities while studying its stress-strain-strength properties constitute the main scope of this study. Axial translation and vapor equilibrium techniques are jointly employed to apply a wide suction range. Our data suggest that soil behavior transits from strain-hardening with shear-induced contraction to strain-softening with shear-induced dilation as suction and density increase. By exploiting a bi-modal soil–water retention curve (SWRC) explicitly separating capillarity and adsorption mechanisms, the shear strength is allowed to be analyzed in the capillary suction stress-shear stress space. The strength envelop exhibits bi-linear characteristics. Building upon these findings, we propose a bi-linear shear strength criterion specifically for dual-porosity fine-grained soils. We utilize the obtained test data to evaluate existing strength criteria based on effective stress and dual stress variables that consider the bi-modal SWRC characteristics. The comparison indicates that the proposed bi-linear shear strength criterion can more reasonably represent the variation of shear strength under a wide range of suction for unsaturated dual-porosity fine-grained soils.