This study aims to determine and compare the dimensional stability, setting time, tensile strength, and rheological properties of kaolin clay powder-modified and unmodified alginate impression material. Commercially available alginate-based impression material was considered as a control (C) while experimental groups E-1, E-2, and E-3 were fabricated by adding 2%, 4%, and 8% of kaolin clay powder in the control, respectively. Analytical techniques were used for the characterization of the samples. A tensile strength, rheological property, dimensional stability, and setting time were recorded for control and experimental groups. FTIR analysis confirmed the presence of kaolin clay powder in all experimental groups. SEM showed a round solid structure and irregular shape particle appearance in all experimental groups as well as a control group. The dimensional stability was improved by the addition of kaolin clay powder to the alginate impression material. The percentage dimensional change at 5 min, 6, and 12 h was increased for E3 adding (8% kaolin clay powder) and decreased for the control group. The mean value of tensile strength was highest for E3 followed by E2, E1, and least in control groups. Higher Young’s Modulus and lower deformation values were measured for E3. The mean value of setting time was highest for E3 and the least was in the control group. The results for both setting time and tensile strength were very highly statistically significant (p < 0.001). The mean values of viscoelasticity, flow, and drip test were increased statistically by adding various concentrations of kaolin clay powder to the alginate impression material.