It has been widely recognized that the addition of lime to soils improves the plasticity and strength characteristics of the soils. This paper examines the stabilizing effect of calcined dolomitic lime on a loam soil. Dolomitic lime is produced from mineral dolomite, a type of limestone containing about 30 percent magnesium carbonate. It has not been used as a soil stabilizer because of containing magnesium carbonate. A series of soil tests, including consistency test, unconfined compression test, oedometer test and CBR test, were carried out. The data of these tests showed that the addition of dolomite to the loam soil reduces its water content and improves its consistency characteristic, compressibility characteristics and strength characteristics as well as CBR values, which are normally recognized as the positive effects of the addition of lime to soils.