Abstract Clays are industrial minerals that are widely utilized for various industrial fields. Eastern Java has a high potential of clay minerals (±348 million tons), including Mojokerto. The research location is in Mlaten and its surroundings, Mojokerto, East Java and covers an area of ± 16 km2. The massive utilization and potential in this area has not been comprehensively followed by research and exploration of clay minerals. In this case, the potential of clay minerals needs to be investigated so that prospective locations can be determined along with recommendations for optimal utilization. To determine the physical properties, which are plasticity test, grain size test, and forming water test, were conducted on 3 samples of raw clay and 1 sample of industrial clay. Furthermore, the geochemical analysis is to determine the major oxide compounds and was conducted on 8 raw clay samples. The lithology units of the study area can be divided into 2 units, consisting of sand-clay unit and weathered upper Quaternary volcanic unit. The Mlaten clay deposits are found in both units. Physical characteristics of clay in Mlaten are consisting of 2,34% - 2,47% clay grain size and having of moderate to high plasticity. The recommendation for forming water in clay utilization ranges from 15-43%. On the other side, Mlaten clay is geochemically characterized by high content of SiO2 (50-59,6%), Fe2O3 (7,24-10,15%), and Al2O3 (16,9-19,9%), but low content of K2O (0,63-1,04%), Na2O (1,44-2,49%), MgO (1,04-1,96%), and CaO (2,42-4,87%). Based on the physicochemical characteristics, Mlaten clay are recommended as raw materials for the manufacture of earthenware ceramic industry, cement industry, and as absorbents in the palm oil industry.