A study was carried out by collecting soil samples from parts of Gwalior and Shivpuri district, Madhya Pradesh in order to assess the dominant clay mineral of these soils using hyperspectral data, as 0.4 to 2.5 μm spectral range provides abundant and unique information about many important earth-surface minerals. Understanding the spectral response along with the soil chemical properties can provide important clues for retrieval of mineralogical soil properties. The soil samples were collected based on stratified random sampling approach and dominant clay minerals were identified through XRD analysis. The absorption feature parameters like depth, width, area and asymmetry of the absorption peaks were derived from spectral profile of soil samples through DISPEC tool. The derived absorption feature parameters were used as inputs for modelling the dominant soil clay mineral present in the unknown samples using Random forest approach which resulted in kappa accuracy of 0.795. Besides, an attempt was made to classify the Hyperion data using Spectral Angle Mapper (SAM) algorithm with an overall accuracy of 68.43 %. Results showed that kaolinite was the dominant mineral present in the soils followed by montmorillonite in the study area.