This paper presents a study on an innovative and effective use of biosolids from the waste water treatment plant in Melbourne, Australia. Biosolids is a treated sewage sludge consisting of untreated organic slurry residue derived from waste water treatment process and the bauxsol is an inert stabilised by-product of the aluminium industry and is a carefully modified residue from alumina refineries, also known as red mud. The settlement behaviour of the road embankment using biosolids stabilised with 1%, 3% and 5% with bauxsol was analysed and presented in this paper. The primary and creep settlements were considered in this study. Furthermore the material model parameters from the laboratory experimental results which were used in this analysis, for the biosolids stabilised with bauxsol are also presented. The results obtained were positive, since settlements were found to be within an acceptable range.