In this study, aiming to investigate the effects of sulfate attack on cement stabilized highly plastic clay; an experimental study was carried out considering the effects of cement type, sulfate type and its concentration, cement content and curing period. Unconfined compressive strength and chloride-ion penetration tests were performed to obtain strength and permeability characteristics of specimens cured under different conditions. Test results were evaluated along with microstructural investigations including SEM and EDS analyses. Results revealed that use of sulfate resistance cement instead of normal portland cement is more plausible for soils under the threat of sulfate attack. Besides, it was verified that sulfate concentration is responsible for strength loss and permeability increase in cement stabilized montmorillonite. Finally, empirical equations were proposed to estimate the unconfined compressive strength of cement stabilized montmorillonite, which was exposed to sulfate attack for 28 days.