Road development projects are a major part of a country’s economic growth. It costs about 50% of a country’s total cost of infrastructure. Therefore, reducing the cost of road projects is important in improving the country’s economy. The subgrade conditions play a major role in the pavement structure. If the subgrade condition is not proper, subgrade improvement is to be done before the commencement of any road project work. The use of Terrazyme, a bioenzyme, is one such new method for subgrade improvement which is delineated in this paper. This paper focuses on the use of a particular dosage of terrazyme to Kaolinitic clay, taken from Thonnakkal region in Thiruvananthapuram city, Kerala. The study showed improvement in Unconfined Compressive strength and California Bearing Ratio with the addition of the terrazyme with increase in curing time. The Dynamic Cone Penetration test was also done in laboratory simulating the field conditions. There is a decrease in the Dynamic Cone Penetration Index shows the method’s effectiveness for use in roads.