This study aims to recycle the phosphogypsum (PG) as pavement subbase material. First, the physical and chemical properties of the PG before and after calcination treatment were characterized. Then the mix design, as well as the performance evaluation of the PG mixture, were detailed. Finally, the engineering application and economic analysis of the PG mixture for paving subbase pavement were presented. It is found that incorporation of the calcined PG (CPG) can help form gel structure to stabilize the PG. Meanwhile, addition of lime can neutralize the water-soluble phosphorus contained in the PG to improve the early strength of the CPG-stabilized PG. The optimal mix proportion of the CPG-lime stabilized PG by mass is determined as PG: CPG: lime = 89: 9: 2. In addition, as compared to the PG stabilized with the traditional inorganic binder materials, the CPG-lime stabilized PG has higher unconfined compressive strength (UCS) and better resistance to the water damage and fatigue damage caused by the water content variation. The field cores extracted from the paved CPG-lime stabilized PG subbase were experimentally observed to have a 7 d UCS as high as 3.69 MPa. Moreover, reuse of the CPG-lime stabilized PG is proven to be a highly economic and environment-friendly pathway for subbase paving, of which total cost per unit cube meter is 504.5 % lower than that of the commonly-used lime-fly ash stabilized soil. These findings identify the feasibility of utilizing the PG for pavement subbase construction.