Flue gas desulfurization steel slag (DS), a solid waste produced by coal power plants and steelworks, was proposed as an amendment for the remediation of saline-sodic soil. A pot experiment including three dosages of DS alone (1%, 5%, 10% w/w) and their combination with fulvic acid (FA, 1%, w/w) was conducted to evaluate the potentials of DS as an amendment and to explore remediation mechanism of DS combined with FA on saline-sodic soil. The soil salinity, nutrition, pore structure, water retention, consistency, and desiccation cracking of DS and FA-amended soils were determined. Application of DS resulted in a significant reduction of pH, sodium adsorption ratio (SAR), and exchangeable sodium percentage (ESP) of saline-sodic soil. The DS amendment significantly increased the 6–15 μm pore volume of soil. The combination application of DS and FA showed better effect than the DS alone. The DS amendments at 5% and 10% significantly increased the field water capacity, permanent wilting point, and available water content of the soil, whereas significantly decreased the plastic limit, liquid limit, and plastic index. The DS alone and combined with FA could effectively control the development of desiccation cracking, reduced significantly the crack area density and average width of cracks of the soil. Consequently, the improvement of alkalinity and soil physical properties by DS amendment significantly increased the yield of alfalfa grown on saline-sodic soil. The remarkable improvement of physical properties of saline-sodic soil contributed to the decrease of SAR and ESP by the Ca2+ in DS replacing the Na + at soil colloid sites. Our results suggested that DS amendments alone or combined with fulvic acid have great potential as saline-alkali soil amendment.