Proper stabilization of foundation and subgrade is one of the major concerns in modern civil engineering projects. Development of modern infrastructure is causing harmful effect on environment by using chemicals. This situation has caused necessity to discover alternative techniques to achieve desired result without harming environment. Present paper studies use of urea formaldehyde raisin on chemical and physical stability of subgrade. Study was conducted by varying contents of urea formaldehyde by 1%, 3% and 5% and strength, ultimate bearing capacity and other relevant soil strength parameters were determined. At the end, cost benefits analysis was also conducted for the current method with respect to alternate subgrade stabilization techniques.