Gypseous soil, which covers vast area in west, middle, east and south west regions of Iraq exhibit acceptable strength properties when dry, but it is weak and collapsible when it comes in touch with moisture from rain or other sources. When such weak soil is adopted for earth reinforced embankment construction, it may exhibit hazardous situation. Gypseous soil was investigated for the optimum liquid asphalt requirements of both cutback and emulsion using the one-dimensional unconfined compression strength test. The optimum fluid content was 13% (7% of cutback with 6% water content), and 17% (9% of emulsion with 8% water content). A laboratory model box of 50x50x25 cm was used as a representative of embankment; soil or asphalt stabilized soil have been compacted in five layers at maximum dry density (modified compaction) and an aluminum reinforcement strips were introduced between layers and connected to the facing strips. The model was subjected to cyclic loading and the lateral deformation of facing strips and the vertical deformation were detected at different stages of loading cycles and different height of the facing strips using LVDT. The reference embankment model was that of reinforced pure soil under absorbed condition. For asphalt-stabilized soil, the cutback asphalt stabilized- soil model exhibit improvement in load carrying capacity by nine folds. It shows a reduction of 23% in vertical displacement under sustained load of 436 repetitions. For emulsion-stabilized soil, the reduction in vertical displacement was 38.5% under a sustained load of 950 cycles. The load carrying capacity was improved by twenty folds. The lateral displacement at the upper first and third layers were lower by 0.55% and 1.9% respectively when compared to cutback asphalt stabilized model