Water treatment residual (WTR) is a waste material from drinking water process. Land application is an option for aluminum-WTR (Al-WTR) disposal. A promising concept is application of Al-WTR and plant residue simultaneously for the rehabilitation of sandy soil quality. The objective of this study was to explore the changes in soil properties and growth of Bahia grass (Paspalum notatum F.) with application rates of Al-WTR ranging from 2.5% to 10% (wt/wt) and pine bark compost at a constant rate of 5.0% in a pot experiment. The results that indicate the soil bulk density, water-stable aggregates, and saturated hydraulic conductivity were improved by Al-WTR application. The Al-WTR application alone significantly (P < 0.05) decreased available P concentration in the soil, whereas the decrease in P availability could not be confirmed with the coapplication of Al-WTR. The coapplication of Al-WTR and compost increased microbial biomass carbon compared with application of Al-WTR alone in the soil. The rates of coapplication to the soil are safe with regard to heavy metals in the soil and plants. Shoot biomass production of grass increased significantly with increased application rate of Al-WTR.