Iron ore tailings are one of the major solid waste materials which are left behind after the extraction of iron from the ore. India, being one of the leading Iron producers in the world, generates large quantities a lot of tailings, whose disposal is an environmental concern. In this study, the impact of iron ore tailings obtained from Ballari district of Karnataka, on the engineering properties of Hyderabad soil types was assessed. In this regard, two soils, namely red soil and black clayey soil were collected from western Hyderabad. Several tests were conducted to assess the index and geotechnical engineering properties of the soils, tailings and the soils blended with 15% and 30% tailings. The tailings were found to be low plasticity, fine grained material occurring in a lumped form, possessing a high specific gravity. A series of Atterberg limit tests, standard compaction tests, permeability tests, direct shear tests, and UU-triaxial tests were performed to study the effect of tailings on the geotechnical properties of the soils. The test results showed that addition of tailings helped improve the compaction and shear strength properties of the soils, as seen from the maximum dry density and c-φ values. Tailings also lowered the liquid and plastic limit values of the local soils. However, no significant changes were observed in permeability values. Based on these results, it was ascertained that these iron ore tailings are suitable material for partial soil replacement and soil improvement purposes for the two Hyderabad soils. This in turn offers a sustainable approach for utilization of tailings.