This study investigates the impact of incorporating Juncus fibers (JF) into compressed earth blocks (CEBs) stabilized with varying Portland cement contents, aiming to enhance local construction materials’ performance and reduce housing costs. CEB composites were produced with soil stabilized using different cement contents (4%, 8%, and 12% by weight) and JF reinforcement (0 to 0.2% by weight), compressed at 10 MPa with a hydraulic press. After 28 days of drying, the CEBs underwent diverse experimental characterizations to assess their physical, mechanical, thermal, and durability properties. The results revealed that incorporating JF led to a reduction in unit weight, ultrasonic pulse velocity (up to 36%), and dry compressive strength (approximately 17%). Higher fiber content correlated with increased water absorption and an increased capillarity coefficient. Thermal conductivity analysis indicated improved thermal performance, decreasing from 0.4350 W/m·K (12% cement without fibers) to 0.2465 W/m·K (4% cement with 0.2% JF). Despite the decrease in mechanical strength, CEBs with lower cement (4%) and higher fiber content (0.2%) demonstrated satisfactory durability (abrasion and erosion) and thermal insulation properties. This research suggests the potential of this material as a promising composite for the building materials industry. The findings contribute valuable insights into sustainable construction materials and have implications for cost-effective housing solutions.