It is imperative for geotechnical engineers to harness ways of improving lateritic soil with industrial waste materials in other to satisfy the required highway pavement construction. This work investigated the effect of Electric Arc Furnace Slag (EAFS) on the engineering properties of Lateritic soil. Tests to determine the X-Ray Florescence (XRF), X-Ray Diffraction (XRD), grain size analysis and specific gravity of the soil sample and EAFS and the lateritic soil stabilization with varying percentages (0%, 4%, 8%, 12% and 16%) of EAFS using Atterberg limits, Compaction and Shear Strength were carried out. The soil sample was classified as A-7-5 (6) and ML according to American Association of State Highway Transportation Official (AASHTO) and Unified soil classification system while the silica-sesquioxide ratio and mineral contents showed that the soil is a lateritic soil as they contain both swelling and non-swelling clay minerals. The stabilized soil sample revealed that EAFS increases the maximum dry density (20.0KN/m3 to 25.0KN/m3) and decreases the optimum moisture content (18.50% to 13.00%) which could be attributed to the lower affinity of EAFS to water thus, improving the compaction properties. Also, the EAFS has significant effect on the strength parameters of the lateritic soil as it increases the shear strength from 551.11KN/m2 at virgin state to 974.44KN/m2 at 16% EAFS. Conclusively, electric arc furnace slag has positive influence on the geotechnical properties of the lateritic soil as it will not only solve the waste disposal problem but can be used as additive to improve the engineering properties of lateritic soil.