Vertical vibration tests were conducted using model footings of different size and mass resting on the surface of finite sand layer with different height to width ratios which was underlain by either rigid concrete base, under both dry and saturated condition. The effect of saturation on the damping ratio of finite sand stratum underlain by a rigid base has been verified and compared with the results obtained for the case of finite dry sand stratum underlain by the rigid base. Comparison of results of the experimental study showed that the damping in both the cases is less than 10%. The damping ratio obtained for finite saturated sand stratum is marginally lower than that obtained on finite dry sand stratum at H/B ratio of 0.5. The difference between the two cases becomes significant when the H/B ratio increases to 3.0, indicating the significant influence of soil moisture on damping ratio of foundation- soil system with increase in the thickness of the finite sand stratum. Comparison of the predicted damping ratio for a homogeneous sand stratum with the experimental damping ratio obtained corresponding to the height to width ratio of 3.0 of the finite sand stratum underlain by the rigid concrete base indicates a significant reduction in damping ratio of the foundation-soil system for both the cases.