For soils to be suitable in civil engineering projects, they must meet existing local requirements for index properties in addition to certain strength criteria. Typically, specifications limit these properties to some threshold values which in most cases are project specific. Some lateritic soils in their natural state need some treatment/modification to meet these specification requirements. The objective of this study was to evaluate changes in the index properties (i.e., particle size distribution, Atterberg limits and compaction characteristics) of a residually derived lateritic soil following fly ash application. Lateritic soil – fly ash mixtures with up to 20% fly ash by dry weight of soil were tested and specimens for compaction characteristics were prepared at different compaction states (optimum, dry and wet of optimum moisture content) and compacted using British Standard Light (BSL) compactive effort. While soil – fly ash mixtures containing up to 15% fly ash classify as CL according to USCS classification system and plotted above A-line in the plasticity chart, it was observed that changes in the gradation characteristics of soil sample treated with 20% fly ash resulted in the alteration of its classification to ML as well as the crossing of the A- line to the silty region. The liquid limit (LL) varied from 42.2 to 29.53% representing 70% reduction while the plasticity index (PI) of specimen treated with 20% fly ash was 16% lower than that of natural soil. The optimum moisture content (OMC) ranged from 17.36% for the natural soil to 18.34% for soil mixtures containing 20% fly ash which yielded dry unit weight of 17.2kN/m3 for the natural soil and 16.1kN/m3 for samples treated with 20% fly ash. From the study, useful data were obtained showing substantial and desirable changes in the properties of lateritic soil as a civil engineering material on application of fly ash.