A detailed experimental investigation has been carried out to study the use of ferric chloride salt to control the undesirable volume changes induced by high concentrated alkali contamination on kaolinitic red earth. X-Ray diffraction studies have revealed that soil alkali interactions produce mineralogical changes and formation of new mineral such as zeolite, which are responsible for observed swelling in non-swelling kaolinitic soil. Loss of ferric oxide, which are known cementing agents has been attributed as one of the reasons for swelling in alkali contaminated soils. The consolidation behaviour of soil compacted with 5% ferric chloride solution by weight of solutions and inundated with alkali solutions as well as soil compacted with alkali and inundated with 5% ferric chloride by weight of solutions has been studied. To study the effect of amount of ferric chloride, the volume change behaviour of soil compacted with different weight percentages of ferric salts by weight of soil (1%, 3%, and 5%) and inundated with alkali solutions has also been studied. The swelling of soil compacted with alkali has been checked by inundating with 5% ferric chloride solutions due to neutralization of alkali and is not controlled when soil compacted with 5% ferric chloride solutions is inundated continuously with alkali solutions. Further, even when the soil is treated with higher amounts of ferric chloride, in the range of 1–5% by weight of soil, the swelling is not controlled. X-ray diffraction studies have shown that the formation of zeolite is not inhibited in the presence of ferric salts.This study clearly shows that ferric chloride treatment can overcome the effects of small concentrations of alkali; it is ineffective to overcome the large and continued exposure of soils with alkali contamination.