In this study, stabilized coal mine overburden (OB) waste is used as a subgrade in flexible pavement design. Stabilization is a process which refine and improve the engineering properties of a material and utilized it in different types of engineering constructions. Here, the coal mine overburden (OB) wastes are stabilized by raw jute fibres (leftover waste jute fibres in jute industry) as the jute fibres are very cost effective. At first, an experimental investigation has been done to check the engineering properties (i.e., water content, optimum moisture content (OMC), maximum dry density (MDD), unconfined compressive strength (UCS), California bearing ratio (CBR) etc.) of OB by conducting various laboratory tests and then by adding 0.5%, 0.75% and 1% of jute fibres respectively to the coal mine overburden (OB) waste, the OMC, MDD and CBR values are determined by compaction test and CBR test. The jute fibres are cut into 25 mm to 30 mm lengths as a stabilizer. After that the compaction test and CBR test have been conducted on a subgrade soil sample of a local area. Based on the experiments performed, there is a comparison of improvement in OMC, MDD and CBR values between the soil sample, the raw coal mine OB by adding 0.5%, 0.75% and 1% respectively of 25 to 30 mm pieces of jute fibres. Then it can be concluded that which one is most suitable as a subgrade in flexible pavement design.