Crop trial was conducted for two years under controlled greenhouse conditions to evaluate compost suitability for amending clay soil in terms of both soil physical and chemical properties. Significant effects of compost addition as mixed or surface application on soil moisture status were noted after each irrigation event. The soil moisture content was slightly higher in the case of surface application than mixed application. Compost application caused significant improvements in the stability of aggregates compared to control. The mixed application of compost at all addition rates caused significant differences in the stability of aggregates in comparison to the equivalent addition rates of compost as surface application. After two compost applications, the aggregate stability increased significantly with increasing compost rate, reaching a maximum at the rate of 240 t ha-1 with no further increasing at the rate of 360 t ha-1 , exhibiting a diminishing return. Addition of high rates of compost to clay soils significantly increased soil pH, O.M%, CEC, and the soluble salts compared to control. Compared to control, mixed application of compost at high rate of 360 t ha-1 increased the soil EC from 0.5 dS m-1 in the control to 4.36 dS m-1 . This increase in soluble salts could be harmful for plant growth and reduce the yields especially in the case of sensitive crops. Major consideration in application of compost on clay soils is the increase in soluble salts. The results of this study revealed that there are several physical and chemical potential benefits of applying compost to clay soils in the organic farming systems.