The environmental impacts caused due to disposal of fly ash strongly emphasize on developing recycling techniques and reduce the amount disposed of. Currently fly ash is recycled and used in various applications that take advantage of its physical, mechanical and pozzolanic properties. The first part of the report describes the process of fly ash generation, methods of fly ash disposal in general and in Gobel Power Plant in bulk quantities. This is to demonstrate the possible applications that can utilize fly ash from Gobel Power Plant. Third and fourth part of the report describes the detailed laboratoray experiments conducted to investigate the geotechnical characteristics and pozzolanic activity of fly ash collected from Gobel Power Plant. Results of the geotechnical experiments showed that fly ash had lower unit weight and compacted density than those of soils, increase in compaction from light compaction to heavy compaction was very small; rate of consolidation of compacted fly ash was very fast but the compression indices were very small; compacted fly ash exhibitied both internal friction and cohesion but shear strength was primiraly derived from internal frictional angle. Results of the pozzolanic activity experiments indicate a significant gain in strength in stabilized sample compared to unstabilized samples, and the CBR of all stabilized samples conform to the requirements of the pavement design standards used in the testing program to compare the CBR of the samples.