Expansive soil is prone to rapid strength degradation caused by repeated volume swelling and shrinkage under alternating dry–wet conditions. Basalt fiber (BF) and cement are utilized to stabilize expansive soil, aiming to curb its swelling and shrinkage, enhance its strength, and ensure its durability in dry–wet cycles. This study examines the impact of varying content (0–1%) of BF on the physical and mechanical characteristics of expansive soil stabilized with a 6% cement content. We investigated these effects through a series of experiments including compaction, swelling and shrinkage, unconfined compressive strength (UCS), undrained and consolidation shear, dry–wet cycles, and scanning electron microscope (SEM) analyses. The experiments yielded the following conclusions: Combining cement and BF to stabilize expansive soil leverages cement’s chemical curing ability and BF’s reinforcing effect. Incorporating 0.4% BFs significantly improves the swelling and shrinkage characteristics of cement-stabilized expansive soils, reducing expansion by 36.17% and contraction by 28.4%. Furthermore, it enhances both the initial strength and durability of these soils under dry–wet cycles. Without dry–wet cycles, the addition of 0.4% BFs increased UCS by 24.8% and shear strength by 24.6% to 40%. After 16 dry–wet cycles, the UCS improved by 38.87% compared to cement-stabilized expansive soil alone. Both the content of BF and the number of dry–wet cycles significantly influenced the UCS of cement-stabilized expansive soils. Multivariate nonlinear equations were used to model the UCS, offering a predictive framework for assessing the strength of these soils under varying BF contents and dry–wet cycles. The cement hydrate adheres to the fiber surface, increasing adhesion and friction between the fibers and soil particles. Additionally, the fibers form a network structure within the soil. These factors collectively enhance the strength, deformation resistance, and durability of cement-stabilized expansive soils. These findings offer valuable insights into combining traditional cementitious materials with basalt fiber to manage expansive soil hazards, reduce resource consumption, and mitigate environmental impacts, thereby contributing to sustainable development.