In developing countries like Pakistan, raw industrial effluents are usually disposed-off directly into open lands or in water bodies resulting in soil contamination. Leachate formation due to rainfalls in openly dumped solid waste also adds to soil contamination. In this study, engineering behavior of soils contaminated by two industrial effluents, one from paper industry (acidic) and another from textile industry (basic), has been investigated. Laboratory testing revealed significant effects of effluent contamination on engineering behavior of tested soils. Liquid limit, plasticity index, optimum moisture content and compression index of tested soils were found to increase with effluent contaminant, indicating a deterioration in the engineering behavior of soils. Whereas maximum dry density, undrained shear strength and coefficient of consolidation of the contaminated soils showed a decreasing trend. The dilapidation in engineering characteristics of soils due to the addition of industrial effluents could pose serious threats to existing and future foundations in terms of loss of bearing capacity and increase in settlement. Keywords: soil contamination, industrial waste, engineering behavior, effluent waste, leachate. First published online: 28 Nov 2016