Dredged soil is a solid waste generated due to dredging of Dal Lake. The Dal Lake has been the centre of Kashmir civilization and is among the most beautiful National heritages. This lake with its multi faceted eco system and grandeur has been inviting the attention of national and international tourists. The urban lake, which is the second largest in the state, is integral to tourism and recreation in Kashmir. But during the past few years grave concern is being voiced by people from different walks of life over the deteriorating conditions of Dal Lake. It has been estimated that on an average 90,000 tons of silt flows annually into the lake resulting in large quantities of silt deposits in the lake. The problems of Lake have been well recognized and efforts are on to save it. The scheme for shoreline dredging of Dal Lake has been formulated with the primary objective to help in Eco regeneration and sustainable development of the lake. Dredging of the Dal Lake generated the dredged soil in large quantity posing serious disposal and environmental problems all around the Dal Lake. Concern over environmental effects of dredging, disposal of dredged soil, and the increasing unavailability of suitable disposal sites, has put pressure for characterization of this soil as a resource for various beneficial uses/engineering applications. For all above applications, a brief study about some physical and mechanical properties of dredged soil forms an important consideration, which will help in proper use of this unwanted soil as well as sustainable development of the Dal Lake. Hence, using dredged soil has a two fold advantage. First, to avoid the tremendous environmental problems caused by large scale dumping of dredged soil and second, to help in sustainable development of the world famous lake in the capital City Srinagar.