Residual soils (RS) are soils which are weathered or decomposed from a parent rock material. This study addresses the effect of compaction on engineering properties of RS found in and around Bahir Dar city, using different compaction effort and drying conditions for repeated and separated soil samples. Most engineering properties improved by increasing the soil density i.e compaction. On RS, compaction leads the soils particles break down and becomes the cause for softening. Sometimes modifications of the standard tests are necessary in order to obtain a proper evaluation for tropical soils. To perform this study, disturbed samples collected from in and around Bahir Dar city and series of laboratory tests were conducted, which are chemical composition tests, index tests, compaction tests, california bearing ratio (CBR) tests, direct shear tests and permeability tests. Based on the nature of latterization in the study area the behavior of RS were determined. From compaction tests results most of (optimum moisture content) OMC values and all maximum dry density (MDD) values in repeated standard proctor compaction (SPC) tests have higher value than separated SPC. When the applied energy increases from SPC to modified proctor compaction (MPC) the MDD increases in both conditions, i.e repeated and separated soil samples, in all drying conditions. The MDD values of highly latterized soil natures have lesser value than lower latterized soil natures after checking their latterization. From CBR test results CBR values of RS in MPC have higher value than the SPC. The CBR values of highly latterized soil natures have lesser value than lower latterized soil natures. From direct shear test results most shear strength parameter (𝜙) values of all test pits in repeated soil compactions have higher value than separated soil compactions. Similarly highly lateritic soil natures have a lesser value in cohesion and a higher value in internal angle of friction. From permeability test coefficient of permeability of all test pits in oven dried condition has lower value than other drying condition in both repeated and separated SPC as well MPC. Coefficient of permeability has decreased when compaction energy changes from SPC to MPC. Highly latterized soil natures have a lesser coefficient of permeability during compaction.