Unsuitable soil materials along the alignment of road projects have a significant influence on planning, design, construction, and maintenance. Expansive soils are susceptible to considerable volume changes due to seasonal variations and moisture content. Most soils found in Jimma and Ambo Zones composed of plastic clay soil, causing severe damage at the intermittent of pavement sections. This research study conducted laboratory investigation considering combinations of materials blended to stabilize the expansive soil for subgrade construction. An experimental type of study performed which started by collecting specimens. Two clayey soil specimens considered to test the free swell index obtained from a depth of 1.5m to remove the organic impurities. Results indicated the chemical analysis of pumice contained 82.68%, while its physical properties of the test of fineness specific surface and residue on 45 microns showed 3770 cm2/gm and 30%, respectively. As the lime content increased, the CBR strength also increased. But, if the percent content of lime decreased with an increasing pumice content, the CBR value did not show any significant increase. Both the chemical and physical properties satisfied the requirements according to ASTM C-618. Hence, this experiment obtained 7% lime + 3% pumice as an optimum mix ratio to stabilize expansive soils.