This paper presents results of an experimental study performed to investigate effect of incorporating silica fume on physico-mechanical properties and durability of resulting fly ash geopolymers. Geopolymer specimens were prepared by activating fly ash incorporated with additional silica fume in the range of 2.5% to 5%, with a mixture of sodium hydroxide and sodium silicate solution having Na2O content of 8%. For studying durability, 10% magnesium sulphate solution was used to immerse the specimens up to a period of 15 weeks during which visual observation, weight changes and strength changes were monitored regularly. Addition of silica fume lowers performance of geopolymer pastes. However, in mortars, addition of silica fume significantly enhanced physico-mechanical properties and durability.