This paper reviews the state-of-the-art as regards the properties of compacted soils. In particular, the engineering properties of compacted soil are discussed in relation to soil structure, moisture content, interparticle (effective) stress, particle spacing, and particle orientation. The importance of compaction moisture content is emphasized because it is a critical factor in determining soil structure. In particular the effect of the aforementioned factors on the strength, volume change, compressibility, permeability, flexibility, and frost susceptibility characteristics of compacted soil are noted.