Mud dauber wasps construct soil nests to protect their offspring from predators, extreme temperatures, and rainwater. The mechanical and thermal properties of these nests are important for the reproductive success of mud daubers. The previous study showed that the high densities and strengths of mud dauber nests were due to the repetitive tapping and atmospheric drying used by mud daubers during nest construction. This study investigated the effect of atmospheric drying on the mechanical and thermal properties of mud dauber nests. The soil shrinkage curve, elastic modulus, suction stress characteristic curve, soil water retention curve, shear strength, and thermal conductivity function of mud dauber nest soils were measured by performing drying cake tests, direct shear tests, unconfined compression tests, and thermal conductivity measurements. This study showed atmospheric drying could increase Young’s moduli (from hundreds to thousands of kPa), the magnitudes of suction stress (up to 64 kPa), and shear strengths (e.g., unconfined compressive strength increased up to 2100 kPa) of mud dauber nests. The thermal conductivity was reduced by 47% due to atmospheric drying. Investigation of mud dauber nests under atmospheric drying could provide insights and inspiration to improve human manufacturing and manipulation of soils for earthen building construction.