It has been recently reported that the presence of sulphate causes abnormal volume changes in lime-stabilized soils. Volume changes in lime-stabilized soils can take place due to sulphate compounds such as ettringite. Sulphate compounds caused a variety of serious geotechnical hazards such as swelling pressure and damages to light structures and pavements. This paper discusses the influence of sulphate on the soil specimens treated with quicklime and chemical additives. The physical and mechanical characteristics were studied by means of laboratory tests. The results showed that the presence of sulphate treated soil reduced the shear strength of the lime treated soils and increased the swelling properties. SEM and XRD results indicated that the presence of sulphate producted needle-like crystals such as ettringite. Moreover, the role of needle-like crystals in specimen was probably related to the swelling properties.