Based on the analysis of chemical constituents and mineral composition, a new disposal method of alumina red mud added in cement stabilized macadam base was put forward. Through experiments of compressive strength, dynamic elastic modulus, splitting intensity and resilient modulus, mechanical properties of alumina red mud- cement stabilized macadam base and base performance affected by alumina red mud dosage were studied. Also, the strength formation micro-mechanism of alumina red mud-cement stabilized macadam mixture was explored by scanning electron microscopy (SEM). The results indicate that alumina red mud-cement stabilized macadam mixture has good mechanical properties; its early compressive strength, early splitting intensity, dynamic elastic modulus, resilient modulus are improved obviously with alumina red mud mixing; the mixing amounts of alumina red mud and cement are significantly affected mixture strength and the optimum mixing amount is respectively 10~12% and 5~6%; alumina red mud can promote cement hydration and hydrates generation. it not only is used as interstitial material among aggregates，also as binder closely linked aggregates through the spatial reticular structure formed by red mud and cement hydrates, which enhance mixture strength.