Weak marine clay deposits are extensively located both on and off the coastal areas in many parts of the world. Due to their poor engineering characteristics, severe foundation problems are commonly faced in the construction of coastal and offshore structures. Such deposits can be stabilized to suit the requirements of the foundations. Of the various stabilizing methods developed, chemical stabilization has been found to be more suitable to clayey deposits because of their reactive nature of the clay minerals. In the present investigation, an experimental programme was carried out to bring out the influence of lime treatment on the engineering behaviour of the soil at the particulate level. Using the x-ray diffraction (XRD) and scanning electron microscopy (SEM) techniques, the stability of the newly formed reaction products on long duration was also confirmed. The formation of cementation compounds such as Calcium Aluminate Hydrate (CAH) and Calcium Silicate Hydrate (CSH) was confirmed by XRD and SEM. The formation of these compounds are mainly responsible for the improvement in the engineering behaviour of the soil. This investigation clearly confirms that the lime induced effects on the soil are permanent.