In this study, a non-traditional and environment friendly chemical stabilizer, lignosulfonate has been used to stabilize high plastic clay and its effectiveness has been investigated through a series of static and cyclic loading tests. Unconfined compression tests were conducted for various percentages of lignosulphonate contents (0.5, 0.75, 1.5, 2.0, 2.5 and 3.0%) by weight of dry soil at curing periods of 5, 10 and 21 days. Shear strength and deformation characteristics of stabilized specimens were examined, corresponding to optimum content of lignosulfonate at which unconfined compressive strength was maximum, for different confining pressures and cyclic stress levels under unconsolidated undrained conditions. Test results indicated a significant increase in unconfined compressive strength and shear strength under static loading; whereas, reduction in axial strains and rate of permanent strain development, and increased resilient modulus under cyclic loading. In addition, SEM analysis has also been conducted to understand the microstructural changes occurring in the soil due to addition of lignosulfonate.