An experimental investigation was carried out to study the feasibility of using the stabiliozed sludge, as a backfill and cutoff-water materials for embankment structures. For stabilizing of sludge, hydrated lime and quick lime were used as additive, and a series of tests were performed on the sludge and the stabilized sludge to examine their physical and mechanical properties , compaction, compressive strength, hydraulic conuctivity and consolidation characteristics. From the test results, physical and mechanical properties of the stabilized sludge were improved as compared with the sludge. Especially from the viewpoint of physcial property, consolidation or settlement and cutoff-water, quick lime is more effective than the hydrated lime as a stabilization addtive. But, viewpoint of compaction and shear strength, hydrated lime is more effective than the quick lime as a atabilization additive. As a result of this study, it was found that the stabilized sludge can be developed the backfill and cutoff-water materials, improved the stabilizing method of sludge.