Construction of embankments on soft soil or sludge is a challenging task due to the inferior strength of the foundation soil and excessively large total as well as differential settlements. If the embankment is constructed as part of an engineered landfill project, it becomes even more challenging because of the requirement of leak-proof lining system, risk of failure and associated environmental disasters. The stability of the structure as well as the integrity of lining system design and engineering needs are to be critically analyzed before impalementing the project. The present study highlights the insights of expansion of a slurry pond dyke height from existing average height of 10 m to 12 m. The perimeter of the slurry dyke is approximately 1600 running meters. Out of this, space for filling soil and increasing the dyke height was available for 1200 m whereas for 400 m stretch, there was no space or access for construction. This posed a unique challenge in terms of both the design and planning for the construction activities including soil transport. As the sludge surface is very soft and has very low shear strength to withstand the pressure from the fill material and liner, special construction techniques were deployed to enhance the strength of the underlying sludge. In parallel to the construction of dyke, vinyl sheet piles were driven 1 m away from the toe of the inner dyke to a depth of 4.5 m below the sludge surface all along the 400 m stretch to reduce the seepage. The inner dyke was constructed on reinforced subgrade which was achieved by laying slag, geogrid and finally geocell filled with aggregate intermittently. This allowed the construction of dyke of 2 m above the slurry surface. The inner dyke was lined with GCL and HDPE geomembrane which were connected with respective liners at the intersections of the outer dyke and thus ensuring the continuity of the lining system. The body of the dyke itself was also further strengthened by introducing geogrid reinforcement layers to ensure the strength and long-term performance of the dyke. This manuscript discusses the details of the engineering requirements, the particular site conditions, proposed construction methodology, design and construction aspects. Particular difficulties encountered during the construction are also discussed in the paper.