AbstractCement-stabilized rammed earth, recognized as a sustainable and cost-effective alternative in the construction industry, is gaining traction. This research investigates its potential as an affordable and durable walling material in Addis Ababa, Ethiopia, and compares it with other prevalent walling products. The study evaluates red clay soil’s physical and mechanical characteristics, both pre and post-cement stabilization. Laboratory tests conducted using soil samples from Addis Ababa demonstrate the viability of cement-stabilized rammed earth. Increasing cement content enhances strength and erosion resistance, making it a cost-effective solution for addressing regional housing challenges. This study assessed the effect of cement content at 0%, 5%, 10%, and 15%. Results show that compressive strength increases as the cement content increases; the compressive strength of cement stabilized rammed earth is 1.766 MPa, 2.85 MPa, 4.79Mpa and 7.61 MPa for 0%, 5%, 10%, and 15% cement content respectively. The cement stabilized rammed earth durability test for 10% and 15% cement content against rainfall erosion show no penetration where 117.5 mm and 1 mm penetration depth for 0% and 5% cement content; the findings underscore increased cement content enhancing the material’s resistance to rainfall erosion.