This study investigates the possible use of unfired compacted clay blocks as a substitute of CSEB (Compressed Stabilized Earth Blocks) for the construction of economical houses. Cubes of 150 mm size were cut from the clay blocks which were compacted at various intensities of pressure during the casting. The results show that the compressive strength of the clay cubes increased with the compacting pressure to which the blocks were subjected during casting. The average crushing strength of the cubes, sawed from clay blocks that were subjected to compacting pressure of 7.2 MPa, was found to be 4.4 MPa. This value of compressive strength is about 50% more than that of normal CSEB. This study shows that the compacted clay blocks could be used as economical walling material as replacement of CSEB.