Abstract: This study presents the relationship between the strength and Liquidity Index (LI) of laterite under various percentage of cement (0, 7 and 13%) in 7-days curing period. Ordinary Portland Cement (OPC) of 7 and 13% of soil weight is added to the soil and various moisture contents are used based on the Optimum Moisture Content (OMC) value from the compaction test (0.9, 1.0 and 1.1 from OMC). The intention is to study the effect of the moisture content on the compaction characteristic and compressive strength. The result from the compaction test shows that the highest and optimum Maximum Dry Density (MDD) was recorded from 13% cement content. The Unconfined Compressive Strength (UCS) tests are carried out and indicate that the strength increases as the cement content increases. Based on the LI and UCS relationship, the strength has reached a minimum value of subgrade design strength for low volume road (0.8 MPa) when the range of the LI is -0.74 to -0.56 at 13% cement content.