Peat soil is said to problematic soil for any Engineering construction. Hence for any civil engineering construction on peat soil requires either replacement of soil or stabilization, in this paper an attempt is made to stabilize the peat soil using lime and rice husk ash. Rice husk ash being the waste material from rice industry and has pozzolanic property. A stabilizer was prepared by mixing 70%of rice husk ash and 30% of lime. Almost all the standard laboratory tests were conducted for peat soil and also by adding the stabilizer by varying the dosage as 5,10,15% by weight of soil. Finally study of the contribution of stabilizer on the properties of peat soils and its feasibility for various civil engineering applications is evaluated. The results show the increment of soil properties like dry density and unconfined compressive strength. From the study it was found that 15% of stabilizer yielded maximum density and strength indicating significant improvement in the engineering behavior.