Dynamic compaction is a widely used soil improvement method in dry and/or saturated soils. Despite its vast application, its design basis is still empirical and the mechanisms that are involved in the procedure are not fully understood. A fully coupled dynamic finite element code has been developed in order to clarify the ambiguities in the process and predict the strain/displacement field in the ground, determine depth and degree of improvement, and also calculate the pore pressure variation during the process. This model can be used as a rational design tool for dynamic compaction projects.