Soil stabilization is an essential engineering process to enhance the geotechnical properties of soils that are not suitable for construction purposes. This study focuses on using coconut coir, a natural fibre to enhance the soil properties. Lime, an activator is added to the reinforced soil to augment its shear strength and durability. An experimental investigation was conducted to demonstrate the effect of coconut coir fibers and lime on the consistency limits, compaction characteristics, unconfined compressive strength, stress-strain behaviour, subgrade strength and durability of the treated soil. The results of the study illustrate that lime stabilization and coir reinforcement improves the unconfined compressive strength, post peak failure strength, controls crack propagation and boosts the tensile strength of the soil. Coir reinforcement provides addition contact surface, improving the soil-fibre interaction and increasing the interlocking between fibre and soil and thereby improve strength. Optimum performance of soil is observed at 1.25% coir fibre inclusion. Coir being a natural product is prone to degradation and to increase the durability of the coir reinforced soil, lime is used. Lime stabilization favourably amends the geotechnical properties of the coir fibre reinforced soil.