Mud mortar is very common for the construction of buildings on a binding material from centuries in the region. Unreinforced masonry construction, either in brick or stone, is one of the popular forms of construction. In most of the buildings in hilly and plain areas of Nepal, mud mortar is commonly used to bind the brick or stone units. In this experimental investigation, different samples of mud were taken throughout Nepal, which represents the typical geographical region of Nepal. To study the performance of mud mortar, different binding materials like commercially available cement, hydrated lime and fibres were added, and also cow dung used in the mud mortar and tested in the laboratory as per code. Lime surkhi and cement mortar were also tested in the laboratory. From the investigation, mud mortar exhibits compressive strength above 0.5 MPa for all mortar composition. The compressive strength of mud mortar depends on clay content. Cement and lime, with and without fibres, have significant effects on the compressive strength of mortar. Cow dung in mortar shows greater strength than other compositions. Lime surkhi mortar has sufficient strength. An increase in specific gravity decreases water absorption. An increase in clay and silt content increases water absorption. The use of fibres with cement and lime decreases the linear shrinkage value.