For soils with inadequate or inferior engineering properties the only alternatives to stabilisation arc removal and replacement of the soil or design to a standard which can tolerate the soils of inferior properties. Frequently neither of these options is simple or cheap and stabilisation then becomes an attractive alternative. Most granular soils are strong in compression and shear, but weak in tension. The performance of such soils can be substantially improved by the modern soil reinforcement technique, i.e. by introducing reinforcing elements in the direction of tensile strains in a very similar way to that employed in reinforced concrete. In this research study an attempt has been made to examine the use of coconut fibres as random reinforcements within soil. The main aim is to investigate the behaviour of coconut fibres coated in asphalt in cohesive soils and the applicability of coconut fibre for improving unpaved roads in rural areas. Based on this limited laboratory testing it was found that addition of coir resulted in marginal changes in compaction characteristics of the soil, but considerable increase was observed in shear parameters and permeability and CBR values. The present study also describes the optimum percentage of coconut fibre to be used, which improves the properties of cohesive soil. From our study it was obsen ed that a soil sample having only 0.6% fibre content of 10 mm length of Coir fibre had considerably improved strength.