Since the shortage of crushed rock as base course in some regions of Thailand, the improvement of the lateritic soil-cement as pavement base course has been evaluated. This paper is devoted to the study of the microstructure and the determination of strength characteristics of cement modified lateritic soils from Thailand. Microstructure of lateritic soil-cement mixes was investigated by X-ray diffraction machine (XRD) and the Scanning Electron Microscope (SEM). This paper is also regarding the improvement of the unconfined compressive strength (UCS) and California Bearing Ratio (CBR) of lateritic soil by using ordinary Portland cement type I. The objective is to use the improved lateritic soil as the base course material for highway. The mineralogical influences and the mechanism of soil-cement reaction on the UCS and CBR development of stabilized soils have been established. The formation of calcite (CaCO3) observed from XRD test after 7 days indicates the early formation of new product due to soil-cement reaction. Following specification of the Highway Department for base course material, soil cement as base course material must have the UCS of soaked specimens at least 17.5 ksc. As regards the application aspect, the results show that cement amended lateritic soils are suitable for base course construction. © 2012 ejge.