Red mud is an industrial waste that has no role in the further processes of aluminium production once the hydrated alumina is produced from the bauxite ore. It is termed “high-volume low-effect” waste generated from the aluminium industry as it is generated in huge quantity with very limited application at present. Despite contributing a few years of research on red mud, its field utilization is relatively low compared to its generation and disposal on expensive land near the industrial plant. Considering this, an attempt has been made to evaluate the feasibility of red mud for subgrade construction which is regarded as high-volume utilization due to the ever-growing road network connectivity in India. Geotechnical characterization of red mud was carried out in the laboratory under static as well as dynamic loadings for application in subgrade construction, viz. Proctor compaction, California bearing ratio, and resilient modulus along with basic properties. Resilient modulus of red mud was determined under cyclic loading and frequency simulated with traffic conditions as per AASHTO: T 307 (2007) standard for application in subgrade construction. Resilient modulus was also estimated from the standard equations suggested by the different researchers and state agencies. To validate the same, resilient modulus of silty soil was also determined under cyclic loading similar to red mud. It was concluded that red mud could be used in the construction of subgrade as per IRC, MoRTH and MoRD specifications. It was observed that derived values of resilient modulus of red mud were relatively unlike in comparison to the experimental resilient modulus value obtained from the cyclic triaxial test. This behaviour of red mud was found similar to the conventional soil.