Laterite was treated with calcium carbide waste and lime as the control, to ascertain its modification and stabilization potential, in incremental order of 2% up to 10 %. Atterbergs limits test, compaction test, California bearing ratio (CBR) and unconfined compressive strength (UCS) test was performed on laterite treated with both additives. The use of χ² test to compare results of tests, showed that there is no significant difference between the modification potential of both additive as reflected in χ² values of 1.293, 0.995 and 0.650 obtained from the comparison of liquid limit, plastic limit and plasticity index test results. However difference was observed with CBR and 7 day UCS test results as χ² values of 13.75 and 11.64 respectively were higher than the standard value of 9.49 obtained from statistical Table at 4 degree of freedom and 5 % level of significance. Based on result of tests, calcium carbide waste is recommended for use in soil modification and stabilization, as usage will provide an effective way of disposing calcium carbide waste.