Soil–lime interactions involve concomitant short-term and long-term alterations of the fine-grained soil resulting in the formation of a workable material bonded by various pozzolanic compounds. These pozzolanic compounds being cementitious in nature are expected to hold the soil particles together and bring long-term strength and stability to the soil–lime composites. However, the durability of cementitious phases formed due to pozzolanic reactions is highly subjective owing to the variations in the moisture and physiochemical factors like pH under diverse environmental conditions. The relative humidity and presence of atmospheric gases like carbon dioxide have a significant impact on the performance of the stabilized system. Carbonation of reaction products, as well as the effects of seasonal moisture fluctuations, can cause the decalcification of the cementitious phases and further degradation in the stabilized system. However, the type of reaction products and their chemical composition, which is a function of the mineralogy of the soil, will determine their durability in adverse conditions. The present study attempts to review the chemistry of reaction products formed in view of its inherent mineralogy. In addition, the degradation nature of the soil–lime composites under adverse conditions like moisture ingress and carbonation is evaluated for their long-term performance. © 2021, Springer Nature Singapore Pte Ltd.