AbstractPhysical properties exhibited by unvegetated mine wastes pose limitations to vegetation establishment and growth. In an attempt to promote vegetation cover on bauxite residue, a field trial was established to determine the effect of spent mushroom compost (SMC) and gypsum amendment on enhancing the physical properties of the residue. SMC was incorporated at rates of 0, 60, 80 and 120 t ha−1 with gypsum at 0, 40 and 90 t ha−1 and Holcus lanatus sown at a rate of 80 kg ha−1.The addition of SMC and gypsum was beneficial in improving the physical properties of the residue and promoting growth. Principally increasing organic content of the residue decreased bulk density and particle density whilst improving substrate porosity. Residue pH, EC and sodicity of the residue were also affected by the amendments, which positively impacted on microaggregate stability and preventing clay dispersion. Pearson correlations demonstrate that the most significant parameters in determining clay dispersion potential are the pH and the exchangeable sodium percentage (ESP) of the residue. Copyright © 2009 John Wiley & Sons, Ltd.