In this research, soil samples of the Kerman sedimentary basin, Iran, were investigated through laboratory tests such as petrography (Scanning Electron Microscopy (SEM), X-Ray Fluorescence Spectroscopy (XRF) and X-Ray Diffraction (XRD)), physical and mechanical characteristics tests. The soil in this area is dominantly CL. The petrography results showed that the dominant clay mineral is Illite. This soil has made some problems in the earth dams due to the low shear strength. In this study, a set of samples were prepared by adding different amounts of lime. Next, the petrography and strength tests at the optimum moisture content were performed. The results of SEM analysis showed substantial changes in the soil structure after the addition of lime. The primary structure was porous and granular that was changed to a uniform and solid after the lime was added. According to XRD results, dominant mineral in none stabilized soil and stabilized soil are Illite and calcite, respectively. The pozzolanic reaction resulted in the reduction of clay minerals in the stabilized samples and calcite was known as the soil hardener material that led to an increase in soil strength. An increase in the hydrated lime leads to a decrease in their maximum dry unit weight and an increase in their optimum moisture content. Furthermore, increasing the hydrated lime content enhanced the Unconfined Compressive Strength (UCS) and soil's optimum moisture. An increase in the strength is significantly affected by the curing time and hydrated lime contents, as the maximum compressive strength is achieved at 7% hydrated lime. Moreover, the maximum increase in the California Bearing Ratio (CBR) achieved in clay soils mixed with 8% hydrated lime.