Soil contamination included oil, chemical, heavy metals and organic contaminant. High concentration of chemicals and toxic metals made the soil incapable for any intended engineering works. studies have been performed on contaminated soil and for their stabilization.In this work attempt has been made to study the effect of diesel oil on properties of local soil and then their stabilization with Fly Ash (FA) and Cement Kiln Dust (CKD). The stabilisation of contaminated soil by CKD improved the soil characteristics to some extent. The value of cohesion can be increased nearly linear by addition of CKD. Swelling is reduced by increasing amount of CKD which leads to the conclusion that the swelling behavior of the soil can be effectively controlled by the addition of CKD. From this study, the CKD may be effectively utilized in improvement of hydrocarbon contaminated soil. The stabilisation of contaminated soil by fly ash improved the soil characteristics to some extent. From the overall observations of the study that, the stabilisation of diesel engine oil contaminated soil using fly ash has been observed to be effective.