Capability to compute neutron dose rate is introduced for the first time in the new version of the CASCADE.04 code. Two different methods, `track length estimator' and `collision estimator' are adapted for the estimation of neutron fluence rate needed to calculate the ambient dose rate. For the validation of the methods, neutron dose rates are experimentally measured at different locations of a 5Ci Am-Be source, shielded in Howitzer-type system and these results are compared with those estimated using (i) modified CASCADE.04.d and (ii) MCNP4A codes and it is found that the agreement is good. The paper presents details of modification and results of the comparative study.