A three dimensional finite element model was used to simulate rapid impact compaction (RIC) in loose granular soils using ABAQUS software for one impact point. The behavior of soil under impact loading was expressed using a cap-plasticity model. Numerical modeling was done for a site in Assalouyeh petrochemical complex in southern Iran to verify the results. In-situ settlements per blow were compared to those in the numerical model. Measurements of improvement by depth were obtained from the in-situ standard penetration, plate loading, and large density tests and were compared with the numerical model results. Contours of the equal relative density clearly showed the efficiency of RIC laterally and at depth. Plastic volumetric strains below the anvil and the effect of RIC set indicated that a set of 10 mm can be considered to be a threshold value for soil improvement using this method. The results showed that RIC strongly improved the soil up to 2 m in depth and commonly influenced the soil up to depths of 4 m.