Bio-enzyme is an eco-friendly stabilizing agent, which can be derived from plants and microorganisms. Marble dust, on the other hand, is a by-product of the marble industry. This paper focusses the utilization of marble dust in clay soil stabilization and also the studies carried out to understand the effect of Terrazyme on UCS and CBR of clay soil. Unconfined compression stress (UCS) tests and California Bearing Ratio (CBR) tests were conducted on mixes of clay soil + Terrazyme+ marble dust to bring out the efficacy of the marble dust and Terrazyme on UCS and CBR values of clay soil. The dosages of Terrazyme used in the study are 0.125ml, 0.25ml and 0.5ml per kg of dry soil. The marble dust proportion of 15% is considered constant in all the tests. The results revealed that the UCS of treated clay has increased with increased Terrazyme dosage for all mix proportions and further noticed that the samples subjected to 7 and 14 days curing period resulted in high improvement in UCS of clay soil. This improvement is about 69% and 101% respectively for both 7 days and 14 days cured mixes as compared to the untreated soil. At 0.25 ml/kg of Terrazyme, the UCS and CBR of 28 days cured mix showed better results than the soil treated with 0.5 ml/kg. The microstructural analysis, such as XRD and SEM, showed the formation of C-S-H gel, which resulted in improvement of soil strength and CBR. Overall, use of 0.25ml/kg Terrazyme and 15% marble dust results in higher CBR and UCS for soil and also it eases the utilization of waste marble dust in the construction industry as stabilizing material.