The effect of heating on gradation, specific gravity, plasticity characteristics, swelling, and shear strength properties of a kaolin and a bentonite were investigated. The test soils were heated in an electric furnace to different temperatures up to 600°C. The engineering properties were determined by following ASTM standard procedures. Results of the study indicate that heating the kaolin to 400°C reduces the amount of swelling drastically. Further heating to 500°C causes a formation of larger particles, a drop of specific gravity, a change into nonplastic, and a substantial increase in shear strength of the kaolin. For the bentonite, larger particles are found when heated to 600°C. Also, at 600°C, the clay becomes nonplastic and nonexpansive and undergoes a moderate strength gain. Based on the results of the investigation, it is concluded that heating can be used to stabilize soft clay deposits effectively.