Red mud, an industrial by-product of the Bayer process for alumina extraction, poses significant environmental and disposal challenges due to its high alkalinity and heavy metal content. However, its physicochemical properties-particularly its fine particle size, pozzolanic potential, and reactivity-also present unique opportunities for sustainable reuse in geotechnical engineering. This review critically examines the utilization of red mud in soil stabilization, subgrade improvement, and embankment construction, with a focus on its interaction with traditional and alternative binders such as lime, cement, fly ash, GGBS, phosphonyls, alkali activators, and biopolymers. Results from experimental studies indicate notable improvements in unconfined compressive strength, bearing capacity, and moisture resistance, while also addressing environmental concerns through immobilization of toxic elements and reduced leachability. The paper also highlights the environmental and sustainability aspects of red mud use, including reductions in carbon footprint and landfill dependence. Challenges such as variability in red mud composition, long-term performance, and regulatory limitations are discussed. This review positions red mud as a viable component in the transition toward circular, and sustainable geotechnical practices.