In order to solve the problem of land resources occupied by disposal mud and shortage of high quality roadbed filler, this paper carried out the triaxial tests study on mud oil stabilized by lime. The result show that disposal mud oil make no pollution to the environment and is stable, which can be stabilized by lime directly. Under different confining pressure and ages, the stress-strain curve of specimen stabilized by lime presents the strain softening characteristics. With the increase of confining pressure and ages, the peak strength and residual strength of specimen increases. As the increase of ages, the cohesion and internal friction angle increase.