|Abstract||Chilika Lake is the largest coastal lagoon in India covering an area of over 1,160 km2. The geomorphology, water quality and biological productivity of the lake had undergone significant changes over the years under the influence of natural events and anthropogenic interventions. Depletion of fisheries and loss of biodiversity have been linked to the silting up of the outer channel and dredging is required to deal with siltation. Characterization of dredging soil from Chilika for construction purposes is a sustainable method to deal with siltation. The properties of the dredged soil depend upon physical properties of parent rock, hydrogeological process and temperature and tidal variations. In the present study two different types of dredged materials are collected; granular soil from Satapada (East side) and clayey soil from Huma (South side). The physical, chemical, mineralogical and morphology are studied. The results indicate that Chilika sand is poorly graded sandy soil with 99.9 % of sand with a specific gravity of 2.64 and pH 7.72. The particle shape analysis using optical microscope for different fractions of Chilika sand particles showed 47.45 % sub-angular, 40.67 % angular and 11.86 % sub-rounded particles. For sustainable stabilization with different aquatic life and flora and fauna, it was found that biopolymer, guar gum is effective in imparting shear strength of sand as compared to xanthan gum to make small (dumps) islands for the migratory birds. In the present study an attempt has been also made to characterize the lacustrine clay deposit. The results indicate that it is highly compressible clayey soil with, specific gravity of 2.44, pH 7.93. The morphological study by scanning electron microscope (SEM) in which various surface features of the grains are studied and mineralogical characteristics of Huma soil by x-ray diffraction (XRD) analyses are also conducted. The compaction and soil water characteristics curve (SWCC) with different additive are also studied. Such a study will help in sustainable development of the Chilka lake.