ABSTRACT In this paper, the behavior of soil stabilized by ferrum lime, a mixture composed of ferric oxide (Fe2O3) and hydrated lime (Ca(OH)2), is investigated in order to assess the engineering properties of the stabilized soil for its application to road construction. The aptitude of the ferrum-lime stabilized soil as road base material is evaluated according to the static compressive, static flexural, and dynamic resilient properties of materials obtained from laboratory tests. The ferric oxide promotes an increase in both compressive strength and the stiffness of the stabilized soil. Resilient modulus Mr, a parameter expressing the material behavior under dynamic cyclic loading, depends on the deviator stress and the mean principal stress. Under lower deviator stress and mean principal stress conditions, the Mr of the ferrum-lime stabilized soil has a higher value than that of the hydrated-lime stabilized soil. However, the difference in resilient modulus Mr between the two types of stabilized soils may not be distinct with increases in the deviator stress and the mean principal stress. In addition, the dependence of resilient modulus Mr on the static strength of the ferrum-lime stabilized soil can be observed. Fracture surface energy ys, a parameter which indicates the resistance ability of a material to cracks, is related to the deflection at failure, but hardly depends on the flexural strength. The ys has almost the same values for both type of stabilized soils. According to test results, ferric oxide can improve the durability of pavement when it is used as a stabilizer for lime stabilized soil.