The engineering strength properties of expensive soils (clayey soil) such as compaction characteristics and bearing capacity can be improved by stabilization process of the soil. These properties can be improved by controlled compaction using the mechanical equipment’s or by addition of suitable admixtures like cement, fly ash, lime, gypsum or by reinforcing the soil with shredded tyre, crumb rubber, plastic waste etc. But gypsum is used now a days to enhance the geotechnical properties. So, in this research paper gypsum and calcium chloride has been used to improve the various strength properties of natural soil. The objective of this research paper is to examine the strength properties of natural clayey soil reinforced with different percentage of gypsum by the weight of soil and fixed percentage of calcium chloride(Cacl2) as a binding material. A series of Standard Proctor tests(for calculation of MDD and OMC) and California Bearing Ratio (C.B.R) tests are conducted on both raw clayey soil and reinforced soil with different percentages of gypsum (2%, 4%, 6% and 8%) by weight and with fixed percentage of calcium chloride (0.75%). A comparison between properties of raw clayey soil, raw clayey soil mixed with gypsum and raw clayey soil mixed with gypsum and calcium chloride (CaCl2) are performed. It is found that the properties of clayey soil mixed with gypsum and calcium chloride (CaCl2) are suitably enhanced.