In order to explore the stability and durable service of a blend of construction waste and red clay under load, a California Bearing Ratio (CBR) test, rebound modulus test and failure strength test were performed to determine the appropriate content of red clay in the blend. The influence of compaction degree, confining pressure, stress ratio and loading times on the macroscopic permanent deformation of the blend was comprehensively analyzed by triaxial tests, and the evolution of internal structure during the deformation process of the blend was simulated by discrete element method. The results show that with red clay at an appropriate content of 65%, the blend of construction waste and red clay can have its permanent deformation increase gradually as the stress level becomes higher, and decrease gradually with the increase of confining pressure and compaction degree. During the deformation process, the internal shear stress, coordination number and slip rate of the blend all increase gradually as the stress level becomes higher. Based on the test results and in consideration of stress state, including confining pressure, failure strength and loading stress, physical state, such as compaction degree, and loading times, a permanent deformation prediction model was proposed and validated. With a correlation coefficient of 0.89, the model is considered to have a “relatively good fit”.