Dynamic compaction method is widely used nowadays in foundation treatment and subsequently, the environment hazards caused by dynamic compaction are receiving more and more attentions from engineering applications and the relevant departments. The monitoring experiments are conducted for studying the effect of the dynamic compaction on the environment in transformer substation of Guangzhou Huadu airport. It is considered of the effect of the construction conditions, the type of the hammer, and the weight of the hammer, the height of the tamping and the frequency of the tamping on the propagation of vibration. In addition, the effects of the vibration isolation trench are analyzed, and a safety distance is determined from the experiment.