The objective of the thesis is to use industrial wastes rather than natural soil, aggregates, etc. in roads and highway construction after enhancing its strength, stability and durability. Conventionally, soil, stone aggregates, sand, bitumen, cement etc. are used in construction of roads and highway. Characteristic materials being limited in nature and thereby need of alternate materials is necessary. Gigantic quantities of soil are utilized as a part of the development of street and parkway yet adequate quantity of soil of required quality is not available effectively. To meet this demand extensive deforestation is being done which cause deforestation, soil disintegration and loss of rich soil which hampers in the farming efficiency. Additionally, cost of procurement of suitable quality of material is increasing. Worried about this, the researchers are searching for option materials for thruway development, and modern waste item is one such class. Stabilization method highlighted in this thesis is mainly to enhance the inherent strength of wastes like fly ash and crushed blast furnace slag (CBFS). This will automatically reduce the use of natural soil in addition to mitigate the disposal problems of industrial solid wastes in a great way. Fly ash and blast furnace slag was collected from Bokaro steel plant (BSP). Tests were conducted by blending fly ash and blast furnace slag in different proportions. The compaction characteristics, strength properties and the bearing value of different mixes are determined. From the compaction tests the optimum moisture content and the maximum dry density are determined for respective mixes. The strength parameters that are the unconfined compressive strength and CBR value for different mixes compacted to their respective MDD at OMC are evaluated. Further these mixes are blended with lime varying as 0%, 2%, 4%, and 8% and the UCS values are determined after a curing period of 0, 7 and 28 days. Similarly, the soaked CBR values of lime stabilized mixes at 0%, 2%, 4%, and 8% are determined after a curing period of 0 and 28 days. The effect of lime, curing period, fly ash and slag content with the unconfined compressive strength values and California bearing ratio values were studied. From the experimental study, it was observed that with addition of blast furnace slag to fly ash- slag mixes, the MDD increases and thereby decreases its OMC value linearly. It was also observed that the UCS value of the fly ash- slag mixes increases with the addition of slag up to slag content of 80% and there after the same decreases with further increases in slag content. The mix with 80% slag shows higher value as compared to 100% slag in the mix. Similar trend was observed for the CBR value for the fly ash- slag mixes, and it was seen that with increase with the slag content the CBR values also increases. However, for 100% slag the CBR shows a lesser value. Higher UCS and CBR values were reported at 8% lime content having a curing period of 28 days. The objective of the present study is to access the suitability of lime stabilized fly ash- blast furnace slag mixes as a highway construction material. So it is concluded that appropriate blending of fly ash with slag gives a better strength compared to individual materials. Further the desired strength required for different component of road can be achieved by stabilizing the mix with appropriate amount of lime.