Soil stabilization is the permanent physical and chemical alteration of soils to enhance their physical properties. Stabilization can increase the shear strength of a soil and/or control the shrink-swell properties of a soil, thus improving the load-bearing capacity of a sub-grade to supports pavements and foundations. Stabilization can be used to treat a wide range of sub-grade materials from expansive clays to granular materials. Lignosulphonate is a lignin based polymeric stabilizer derived as a waste by- product from wood/paper industry. It consists of both hydrophilic groups including sulphonate, phenyl hydroxyl and alcoholic hydroxyl and hydrophobic groups including carbon chain. Lignosulfonate has shown a promising prospect as a stabilizing agent especially for soft soils. In this paper, the compaction characteristics and shear strength properties were analysed.