When urbanization progresses quickly, infrastructures must be developed on problematic soils, which needs for strengthening and improvement. In this study, a novel material Lignin which is a by-product of paper and wood pulp industry, is used to improve the soil geotechnical behavior as a sustainable, non-toxic and eco-friendly stabilizer. The engineering properties of the stabilized soil were evaluated using several laboratory tests such as Atterberg’s limit, unconfined compression strength (UCS), swell pressure, and CBR. The effect of stabilized soil was analyzed at different proportions of lignin (i.e., 0.5, 0.75, and 1%) and at different curing periods. From the result, it has been observed that the plasticity index (PI) of the soil is significantly decreased and UCS value increases with increase in lignin content up to certain percentage. The maximum UCS values for stabilized soil found at 0.75% of lignin content. Subsequently, CBR tests were conducted on a sample having maximum UCS value at different curing periods. From the results, it has been clearly demonstrated that the increase in curing time significantly enhanced the strength and reduced the swelling characteristics for lignin treated soil. Hence, it can be said that the lignin has ensured a promising potential to be utilized as a soil stabilizer and also provided durability and sustainability to structures.