In this study, feasibility of using seawater to neutralize alkaline red mud for its safe disposal has been studied using Taguchi’s design of experimental methodology. Parameters such as weight of red mud, volume of seawater, stirring time and temperature were tested at three levels to study their effect on response characteristic, i.e., pH of the neutralized slurry. The analysis of variance showed that volume of seawater added and quantity of red mud are the two significant parameters with 53.59 and 44.92 % contribution each, respectively. Under the optimized parameters, pH value of red mud slurry reaches to about 8.0 which is within disposable limits. When seawater or other Ca- and Mg-rich brines are added to caustic red mud, the pH of the mixture is reduced causing hydroxide, carbonate or hydroxy carbonate minerals to be precipitated. This mechanism of neutralization process has been explained with emphasis on chemical analysis, mineralogy and morphology of the neutralized red mud. The process improved the physical characteristics of red mud with entrained liquor becoming non-hazardous water with reduced alkalinity. The results would be extremely useful in the process of safe disposal of red mud.