Recycled demolition waste (RDW) and ground granulated blast furnace slag-fly ash-based geopolymer (GFG) are promising materials for treating high-plasticity clay (CH) in highway subgrades. However, the underlying synergistic stabilization mechanisms remain unclear. To elucidate the fundamental mechanisms governing post-treatment soil stabilization, a multi-scale laboratory investigation was undertaken. This investigation encompassed the evaluation of mechanical properties (compaction, California bearing ratio (CBR), and unconfined compressive strength (UCS)) to quantify the enhanced performance of the treated soil. Additionally, microstructural and mineralogical characterization was performed using X-ray diffraction (XRD), Fourier transform infrared spectroscopy (FTIR), Scanning electron microscopy (SEM), and atomic force microscopy (AFM) to elucidate the microscopic mechanisms responsible for this improvement. The results indicated that the addition of RDW led to a reduction in the optimum moisture content (OMC) while increasing the maximum dry density (MDD) of CH. Moreover, upon incorporating RDW-GFG, the mechanical properties of the cured soil exhibited significant improvement. Specifically, the addition of 25% RDW to CH resulted in a 184% increase in CBR and effective improvement in water stability (immersion swelling percentage is reduced). Furthermore, when 25% RDW and 15% GFG were added to CH, the UCS has increased significantly by 8 times. The addition of RDW effectively enhanced the particle size distribution, compacted the soil, thus increased the shear strength. The results from XRD and SEM analyses revealed that the inclusion of GFG could generate geopolymer cementitious bonding network in the soil matrix. These materials facilitated bonding between CH particles and RDW, filling the pores and densifying the overall structure, thus increasing its strength. The synergy of RDW-GFG substantially improved the highly plastic soil through physicochemical actions, markedly elevating both its strength and water stability. Consequently, the outcomes of this experimental study offer valuable insights for road engineering applications.