Red mud is an industrial waste material generated during the extraction of aluminium metal from bauxite ore. It is deposited in a slurry form into the dam which is called the tailing dam near the industry. It is occupying large costly land without uses. Its production is about 9 million tons/year in India. To investigate its potential application in road infrastructure, it was collected from M/s Vedanta Ltd. Lanjhigarh, Odisha. Basic geotechnical characterisation of red mud was carried out in the laboratory. To improve its geotechnical properties, it was stabilised with cement in the range of 3 to 9 % to investigate their potential application in subbase and base layers of road infrastructure. Compressive and durability characteristics of stabilised red mud were also studied. A laboratory study concluded that red mud is a fine-grained silt-size material. Other geotechnical properties are similar to conventional silty soil viz. dry density, and shear strength. Unconfined compressive strength and durability characteristics indicated the suitability of cement-stabilised red mud for the construction of subbase and base layers of road infrastructure as per Indian road congress guidelines. Application of red mud will lead to the sustainable development of road infrastructure and will reduce environmental pollution.