Soils showing changes in plasticity characteristics upon driving form an important group in tropical soils. These changes are attributed to the grouping of particles into aggregates either due to mineralogy or presence of cementing agents and/or pore fluid characteristics. These changes are found to be permanent. In this paper, the effect of these changes leading to changes in index properties is discussed. The coefficient of permeability has been found to be comparable at liquid limit water content for different soils of varying liquid limit values. Permeability is an indirect reflection of microstructure and indicates the flow rate, which depends upon pore geometry. Other mechanical properties like compressibility and shear strength also depend upon pore geometry. These microstructural aspects of liquid limit as a reference state for the analysis of engineering behavior of tropical soils are examined in detail