Resilient modulus (MR) of subgrade is essential for pavement design although this test is very costly in terms of labor and time. On the other hand, Dynamic Cone Penetrometer (DCP) is a very cost effective test to evaluate subgrade materials. A correlation between the MR and the DCP may be very useful to determine the MR of subgrade in a cost effective manner. This study correlates the field DCP derived MR with the laboratory determined MR of subgrade. As a first step, field DCP test was conducted in a pavement in New Mexico during construction. Then material was collected and laboratory MR test was conducted. The MR derived from the DCP test was correlated with the laboratory MR. Results show that the MR value obtained from DCP test is about 1.8 times of the laboratory resilient modulus value for 7 psi bulk stress.