In a railway project of Gauge Conversion, in the year 1996 on a diversion work, a 2 km stretch of unstable formation was reported on the right side of the meter gauge (MG) alignment. During the monsoon, wide cracks and holes appeared on the crest and on the right side of embankment slope resulting in disturbance of track alignment as well as ballast puncturing thereby forcing the authorities to impose speed restrictions. Recently, during the doubling of railway track, on the same stretch, it was anticipated that presence of problematic soil of high or intermediate plastic dispersive clay may result in uneven settlement beyond the permissible limits. Hence, a detailed geotechnical study and numerical investigations were carried out to provide the best solution out of different options chosen, such as (i) provision of geogrid below blanket layer, without and with coverage of side slope; (ii) provision of geogrid layer with gabion wall at the toe of the side slope; and (iii) provision of geogrid below the blanket layer along with provision of single or double layer of diaphragm wall. Comparing the results of the numerical analysis with suggested ground improvement techniques with the corresponding results obtained for existing railway track formation without any provision of ground improvement techniques, it was noted that provision of geogrid covering the entire side slope provides the factor of safety more than the acceptable limit. Study highlighted that provision of gabion wall or diaphragm wall at the toe or within the slope does not have measurable impact in improving the safety.