The purpose of this research is to explore the feasibility of using calcium carbide residue (CCR), a by-product from acetylene gas production, as a solid alkaline activator on the strength development in CCR–Portland cement-stabilized dredged sludge (CPDS). The effects of cement content, CCR content and curing time on the strength development of CPDS were investigated using a series of unconfined compressive strength (UCS), pH and electric conductivity (EC) tests. Scanning electron microscopy and X-ray diffraction analyses were performed to gain additional insight into the mechanism of strength development. Meanwhile, the carbon footprints of CPDS were calculated. Following the results, it was found that CCR can significantly improve the strength of cemented dredged sludge. On the basis of the strength difference (ΔUCS) and strength growth rate (UCS_gr), it was recommended that utilizing 20% cement with the addition of 20% CCR is the most effective way to develop the long-term strength of CPDS. In addition, the microstructural analysis verified that the optimum proportion of CCR benefits the formation of hydration products in CPDS, particularly needle-like gel ettringite, resulting in a less-porous and dense inter-locked structure. Furthermore, the solidification mechanism of CPDS was discussed and revealed. Finally, it was confirmed that CCR can be a sustainable alternative and effective green alkaline activator for the aim of improving cemented dredged sludge.