Industrial waste disposal is an increasing problem in recent years. Waste plasterboard is generated in vast quantities as a by product of demolition buildings and houses. If waste plasterboard can be effectively utilized as a construction material, the problems of waste plasterboard disposal and shortage of natural resources for construction may be solved. Bassanite produced by heating gypsum obtained from waste plasterboard, under conditions of 130 or more. It is also environmentally friendly, due to its neutral nature. This paper describes the compaction properties and unconfined compressive strength of compacted bassanite produced from waste plasterboard. The effects of bassanite additions on stress-strain behavior of cement stabilized soils are quantitatively shown. The utilization of bassanite produced from waste plasterboard would help alleviate disposal problems, while reducing the demand for natural aggregates.