Laterite is a naturally occurring rock formation that is used worldwide as a building material in tropical regions. Its unique features have enabled some of the most astounding architectural feats, which irrevocably altered the cultural and historical contexts of their surroundings. This study examines the laterite stone masonry performance, with a specific focus considering its mechanical properties, mineral composition, and microstructure. However, mineralogical composition and microstructural features vary, affecting mechanical qualities and endurance. The study also extensively examines four varieties of laterite samples used for construction in the Udupi region. Experiments were performed to determine the percentage of water absorption and its impact on the compressive strength of Laterite stone. L1 Laterite stone showed better performance due to its exceptional strength. It surpasses the other samples and is well-suited for the construction of load-bearing structures as it aligns with the IS 3620 standards. Stack bond masonry prism samples were built using four varieties of laterite stones with 1:6 cement mortar for the joints. These prism specimens were subsequently tested under compression, tension, and shear loading to determine the variation in their behaviour. The series of tests performed revealed that the prisms failed due to splitting and crushing under compression loads. In shear and tensile bond tests, all laterite masonry prism samples failed due to rupture of the joint. Microstructure study confirmed that the increased strength of lateritic samples L1 and L2 is due to less prominent clay particles coupled with a higher percentage of ferrous content.