The expansion of China’s highways and railways, as well as the growing demand for them, has focused attention on the impact of traffic loads on foundation settling, uneven deformation, and ground cracking. These effects have garnered considerable research attention, with particular emphasis placed on integrating innovative materials into the soil matrix. This investigation involved loading experiments utilizing a combination of lightweight soil, expanded polystyrene (EPS), and cement. Consolidation tests assessed the extent of deformation and settlement, incorporating varying proportions of EPS and cement. The test results show that when subjected to confined conditions, the stress–strain relationship curve assumes a hyperbolic shape closely linked to the e-p curve. This shape effectively captures the unique structural characteristics exhibited by lightweight soils. As the size of the EPS particles and the applied stress increase, a corresponding rise in the strain of the specimens is observed. Simultaneously, as the strain magnitude increases, the elastic modulus experiences a decline. Additionally, it is noted that this trend further increases as the doping of the cement with EPS particles increases. When the EPS volume ratio and cement mix ratio remain constant across different specimens, there is a decrease in structural strength as the size of the EPS increases. In lightweight soil, settlement can occur rapidly, with approximately 95% of total consolidation deformation happening within a few minutes, which suggests that the settlement is instantaneous and primarily consolidation settlement. The structural strength of lightweight soil shows a negative correlation with the size of EPS, implying that larger EPS size may lead to a reduction in strength. Therefore, it is recommended to consistently use EPS beads with a diameter of 3–4 mm during construction.