Abstract—The stone dust from the crusher units of construction sites is an environmental hazard. The disposal of stone dust is a major problem. In this paper an attempt is made to study the effective use of stone dust as a stabilizing agent. An experimental investigation is carried out to study the effect of stone dust on engineering properties of soil. The engineering properties considered are Optimum Moisture Content, Maximum Dry Density and California Bearing Ratio. The changes in these properties of the natural soil with the addition of soil dust in different proportions were evaluated. It is observed that the above properties have optimally improved by adding stone dust. This study shows that stone dust can be satisfactorily used as a cheap stabilizing agent for sub-grade layers and sub-base layers of a flexible pavement. The study area considered is Ranchi, in Jharkhand, India.