Compacted lateritic soil treated with up to 16% bagasse ash content was subjected to one-dimensional consolidation test using the British Standard Light (BSL) compactive effort; prepared at -2%, 0% and +2% of the optimum moisture content (OMC). The study showed improvement in index properties, lower maximum dry density (MDD) and higher optimum moisture content (OMC) with increased ash treatment. In a pattern similar to natural clay, the void ratio decreased and increased with pressure increase and decrease, respectively. An increase in the gross yield stress was recorded with increased bagasse ash content and water content relative to optimum; a reduction in compression index was recorded with increase in bagasse ash treatment and water content relative to optimum. Coefficient of volume compressibility decreased with increased loading pressure, while bagasse ash content did not show any established trend. The coefficient of consolidation decreased with increased loading pressure and bagasse ash treatment. These results show an overall improvement in the consolidation properties suggesting the suitability of the material in fills for embankment and low lying marginal land for foundation works; also solving the environmental problems associated with waste bagasse disposal.