Contamination of soil due to an oil spill influences its subsequent engineering behavior. An investigation was conducted to study the effect of crude oil contamination on compaction characteristics, shear strength, one-dimensional compression, and coefficient of permeability. Water permeability was also determined by using commercial grade motor oils as contaminants. The test results indicate that the compaction characteristics are influenced by oil contamination. The angle of internal friction of sand (based on total stress condition) decreases due to presence of oil within the pore spaces in sand. One dimensional compression characteristics of sand are significantly influenced by oil contamination resulting in a decrease in the value of constrained modulus with increase in the degree of oil contamination compared to the case of dry sand. Water permeability was observed to be a function of the initial viscosity and the degree of saturation due to the contaminating oil.