Canal linings and canal embankments founded in expansive soils are subjected to sever distress because of alternative swelling and shrinking undergone by these soils due to seasonal variation of moisture content occurring in rainy seasons and summers. This paper discusses the use and efficacy of fly ash (FA) as a stabilizing additive to problematic expansive soils. The paper analyze the seasonal variation of sub grade CBR along the canal embankment, and also presents experimental results obtained from tests conducted on FA-clay blends. Liquid limit, plasticity index, free swell index (FSI), compaction characteristics, strength parameters and CBR were determined on the expansive clay specimen to which FA was added in different quantities such as 5, 10, 15, 20…40% by dry weight of the soil. Test results indicated that FSI and PI decreased with increasing FA content. Further, CBR and angle of internal friction increase while cohesion decrease.