Lateritic soil covers Western and dominantly Southern part of Ethiopia specially in NekemeteWollega,rnDilla,rnHossana,rnChidarnandrnWollayitarnSodornarea.rnrnWhen lateritic soil consist of high plastic clay, the plasticity of the soil may cause cracks andrndamage on pavement, road ways, building foundations or any other civil engineeringrnconstruction projects. The improvement in the strength and durability of lateritic soil in thernrecent time become imperative, this has geared up researchers toward using stabilizingrnmaterials. rnrnIn this study, the soil sample was collected from southern Ethiopia region called WollayitaSodornaroundrnWadurnarearnwhichrnwasrnonernofrnthernsamplernarearnforrnpreviousrnstudyrncalledrnâ€œIndexrnandrnrnshearrnstrengthrnstudy ofrnLateriticrnsoilrninrnWollayitarnSodornareaâ€rnbyrn(Tibebu,2008)rnrnrnrnIndexrnpropertiesrnandrnEngineeringrnpropertiesrnofrnthernsoilsrnwerernstudiedrnandrnsoilrnisrnclassifiedrnasrnA7-5rnrnaccording to AASHTO classification, the PI is about 22% and soaked CBR value ofrn21.9%.These values does not meet the desired values for competent road base and sub basernmaterial according to ERA pavement manual .Therefore, In this study an attempt was made tornimprove the property of the soil by stabilization with increasing percentage of lime untilrnoptimum percentage is found.rnrnAs shown from the study, the addition of lime decrease maximum dry density and increase thernoptimum moisture content with the same compaction effort and decrease the plasticity byrndecreasing the plastic index to 7%.The unconfined compressive strength of Tp1 and Tp2 hasrnimproved from 341.05kpa at 0% to 352.3kpa at 4% and 391.823kpa at 0% to 369.08kpa at 4%rnlime content respectively as well as the soaked CBR value has improved from 21.9% at 0% torn54.7% at 4% lime Content. rnTherefore, samples do not qualify for base course but can be utilized as a sub base material withrn4% lime stabilization.