Soil stabilization is the one of the ground improvement techniques adopted to improve soil properties by the addition of extra ingredients. Expansive soils are generally considered as problematic due to their property changes associated with change in water content. Randomly distributed fibers can be effectively used to strengthen the soil by acting as reinforcements. In this study, soil was stabilized with 6% of hydrated lime and that reduced its swelling and consistency limits. The soil-lime mix was further stabilized by adding 2, 4 and 6 % of bagasse fiber. The resulting mixtures provided improved density and California Bearing Ratio. From the investigation it was concluded that, soil can be stabilized using hydrated lime and bagasse fiber, especially in the pavement point of view, where the soil can be used as the subgrade material. © IAEME Publication.