Red clay in humid-hot environments suffers from severe water sensitivity and rainfall-induced slope instability, while traditional cement/lime stabilization faces high carbon emission challenges. Existing studies on plant ash-modified red clay mainly focus on basic mechanical properties, while systematic research on water retention characteristics and slope stability under extreme rainfall in humid-hot climates remains insufficient. To address this gap, this study proposes a sustainable stabilization method using agricultural waste-derived plant ash for red clay modification in humid-hot regions. Red clay exhibits distinct engineering behaviors owing to its unique physicochemical properties, leading to compromised slope stability and reduced resistance to rainwater infiltration. In this study, red clay was stabilized with 5%, 10%, 15%, and 20% plant ash. Laboratory tests evaluated compaction characteristics, shear strength, and water retention, supported by microstructural analysis via scanning electron microscopy (SEM). Slope stability under rainfall conditions was further simulated using ABAQUS 2022 software. Key findings include: (1) The addition of plant ash significantly altered the compaction properties. As the plant ash content increased from 0% to 20%, the maximum dry density of the modified red clay decreased linearly from 1.68 g/cm³ (unmodified soil) to 1.53 g/cm³, while the optimum moisture content rose from 21.86% to 23.85%. (2) The mechanical properties exhibited a non-linear response, peaking at 10% ash content. At this optimum dosage, the unconfined compressive strength, cohesion, and internal friction angle increased by 70.4%, 83.0%, and 37.1%, respectively, compared to untreated soil. (3) Plant ash enhanced water retention capacity, shifting the soil-water characteristic curve (SWCC). The modified soil demonstrated faster dehydration at low suction but improved water retention at high suction. The permeability coefficient decreased by an order of magnitude. Microstructural analysis revealed reduced porosity and fracture infilling by cementitious gels. (4) Numerical simulations confirmed that 10% plant ash reduced maximum slope displacement from 0.96 m to 0.61 m under heavy rainfall (90 mm total precipitation over 36 h, peak intensity 90 mm/day), elevating the safety factor from 0.85 to 1.45. Failure modes transitioned from deep-seated slip to localized shallow erosion. These results demonstrate that plant ash is a sustainable and effective additive for red clay slope stabilization in tropical climates.