This paper describes the results of a study which was primarily directed to the determination of geotechnical properties of fine and coarse grain soils stabilized by lime obtained from Taleghan, northwest of Tehran to assess its suitability as construction material. Soils were treated with lime mixtures in various portions between 3 to 9 percents by weight. The samples were cured for different periods of time up to 90 days under 30°c and 60 percent relative humidity. The geotechnical properties were investigated by: (a) compaction characteristics, (b) compression tests and (c) direct shear tests. The results indicated soils maximum dry densities decreased while the optimum water contents increased. The compressive and shear strength of admixtures depicted an increasing trend. It was observed that addition of 6 percent of lime caused a significant increase in strength properties of CL and SC grain soils. However, the SC soil yielded the best results.