A laboratory study was carried out on both natural and compacted specimens to investigate the complex soil-water interaction in an unsaturated expansive clay. The laboratory study includes the measurement of soil-water characteristic curves, 1D free swelling tests, measurement of swelling pressure and shrinkage tests. The test results revealed that the air-entry value of the natural specimen was quite low due to cracks and fissures present. The hydraulic hysteresis of the natural specimen was relatively insignificant as compared with the compacted specimen. Within a suction range 0 to 500 kPa, a bilinear relationship between free swelling strain (or swelling pressure) and initial soil suction was observed for both the natural and compacted specimens. As a result of over-consolidation and secondary structures such as cementation and cracks, the natural specimens exhibited significant lower swelling (or swelling pressure) than the compacted specimen. The change of matric suction exerts a more significant effect on the water phase than on the soil skeleton for this expansive clay. A laboratory study was carried out on both natural and compacted specimens to investigate the complex soil-water interaction in an unsaturated expansive clay. The laboratory study includes the measurement of soil-water characteristic curves, 1D free swelling tests, measurement of swelling pressure and shrinkage tests. The test results revealed that the air-entry value of the natural specimen was quite low due to cracks and fissures present. The hydraulic hysteresis of the natural specimen was relatively insignificant as compared with the compacted specimen. Within a suction range 0 to 500 kPa, a bilinear relationship between free swelling strain (or swelling pressure) and initial soil suction was observed for both the natural and compacted specimens. swelling (or swelling pressure) than the compacted specimen. The change of matric suction exerts a more significant effect on the water phase than on the soil skeleton for this expansive clay.