Peat is in the category of problematic soil because it has low shear strength and high compressibility, which are not suitable for construction. Peat lands can be found in various parts of the world; therefore, it is essential to fmd an alternative to improve the strength since nowadays lands are very expensive and very limited. This paper presents a research on peat stabilization with objectives that are to improve the soil to be more stable and to have higher strength and to find a cheap alternative material that can be used as a stabilizing agent. In this research, an admixture, which is carbide lime, a by-product of acetylene is used to stabilize the peat soil. Laboratory tests on physical properties and shear strength are done. The research is done on peat soil that is collected from Matang area in Kuching, Sarawak. Investigation on the effects of various percentages of carbide lime added to the soil at different curing time on the soil strength is performed. The changes in strength gained are also compared with the natural soil sample. The unconfined compressive strength test results are analyzed and show that, with the increase of percentages of carbide lime added and the increase of curing time, the strength of the peat soil sample is increased.