The collapsibility behaviour is considered one of the serious geotechnical problems facing constructions on fine sand. One of the commonly used methods of stabilization for this type of soil is compaction. Collapse behaviour of compacted fine sand containing lime was investigated. Oedometer tests were carried out to study the effect of lime on collapse settlement of compacted fine sand. Samples of fine sand soil were prepared and mixed with different amounts of lime (0%, 5%, 10%, 15%, and 20% by weight of dry fine sand). For each soil sample, maximum dry density and optimum moisture content (OMC) were determined. Soil samples were prepared in oedometer ring at various compaction degrees (Ic=90% and 100%) and moisture content (OMC=3%). The collapse potential was investigated under applied pressure of 200 kN/m2. The obtained results indicated that, the collapse potential increases with: (1) the increase of lime amount; (2) the decrease of natural moisture content and compaction degree. Moreover, increasing the compaction effort decreases the risk of fine sand collapsibility.