In the present study red mud is used as a substitute of soil for construction of pavement layers. Red mud is produced in slurry form from the processing plant and disposed into red mud pond which causes environmental pollution in terms of air, land and water. In dry condition it causes air pollution, harmful to eyes and in slurry form it causes harmful to skin. Therefore due to the scarcity of land in our country the storage and disposal of red mud creates a big problem, so red mud is used as an alternate way in different construction purposes. In this research work, red mud is stabilized with Terrazyme and DZ-2X and strength characteristics are achieved through different tests like CBR, UCS and Triaxial tests. From the tests, the soaked CBR, UCS, C and Φ value of treated red mud with bio-enymes increases largely after 21 days of air-dry curing. Therefore, red mud can be used in subgrade, sub base course in construction of road, embankment after it is being stabilized with terrazyme and DZ-2X independently. But by comparing with both bio-enzymes, terrazyme treated red mud shows larger increment then DZ-2X treated red mud. So terrazyme is the greater choice for stabilization.