Stone columns are considered as one of the well-accepted as well as cost effective ground improvement techniques for the stabilization of weak soil deposits. This paper discusses the results of a series of small-scale model column tests that were undertaken to investigate the behavior of lime columns reinforced with fibers.The tests focused on studying the effect of percentage of fibers used as reinforcement to the lime column, the diameter of column was varied in accordance to the diameter of test specimen. The effect of consolidation of soft soil due to inclusion of the stone columns on settlement response has also been included in the model. Plane strain conditions are considered for the loading and reinforced foundation soil system . It has been observed that if the soft soil is improved with reinforced lime columns, there is considerable reduction in the total settlement due to lime column itself. The increase of fiber percentage in the stone columns is effective for reducing the total settlement .Results from a series of laboratory model tests on unreinforced and reinforced lime column-improved soft clay with fibers have been presented. As compared to unimproved soft clay, the increase in load-carrying capacity under different improved ground conditions has been observed. Since introduction of fiber in lime improves its engineering behavior, unconsolidated undrained triaxial compression tests are conducted on clay samples with central lime-fiber core in order to explore the suitability of lime-fiber cores in stabilizing clay deposits. The results indicate that the deviator stress is improved by the placement of lime -fiber column.