This paper describes the results of research carried out for evaluating the effects of hydrated lime, with and without chemical activators, for the modification (up to 2% lime) and stabilisation (more than 2% lime) of residual granite soils. The effects of the modification of granitic soils with the addition of 2% calcitic lime were studied; and the results of these modifications on particle size distribution, plasticity and strength gain of two soils with different clay fractions are reported. Furthermore, the effects on compressive strength when 6 and 10% lime were added for curing times up to 10 weeks were monitored. The effects of saturation of the stabilised soils were also studied, as well as the effects of a small percentage of NaCl on stabilised soils with and without saturation. This addition of NaCl proved to be highly beneficial and a better alternative than the addition of larger amounts of lime. Estimated loss of strength due to saturation of cured specimens appeared to be constant with curing time, indicating that this effect is due to loss of suction potential.