Portland pozzolana cement (PPC) and Gypsum were used as a stabilizer to treat dispersivernsubgrade soil along the Melkasa-Sodere-Nurera-Metahara Road project. Experimentalrnlaboratory investigation were carried out on two subgrade soil samples to determine thernengineering properties of stabilized soils. The untreated soil samples collected from tworndifferent locations show a dispersion potential of 69.9 and 99.1 percent, respectivelyrnevaluated on a double hydrometer test.rnTreated soil samples were prepared by varying the amount of cement from 1.0 to 5.5rnpercent by weight of dry soil sample and gypsum from 2.0 to 8.0 percent by weight of dryrnsoil. The treated samples were evaluated for dispersion potential by double hydrometer testrnand unconfined compressive strength. The result was evaluated based on the Decker andrnSherard dispersive soil classification criteria.rnThe samples treated with cement had shown a huge improvement interms of dispersionrnpotential and satify the non-dispersive soil classification based on the Decker and Sherardrncriteria at 1 and 2.5 percent for samples A and B respectively. These samples show a higherrnincement in compresssive strength too. The gypsum treated samples, even if shows a hugernimprovement in dispersion potenetial, they were failed to satisfy the non-dispersive soilrnclassification based on the crieteria set by Decker and Sherard and it is not considered forrntreatment of the current subgrade soil. The strength development of soil samples treatedrnwith gypsum are lower as compared to cement treated samples.