Based on the finite element software-MARC and users subroutine of Goodman element, authors analyze the effects of shallow layer saturated loess foundation treated with geocell. The results show that impact depth of geocell is about 50% of saturated loess foundation, and horizontal displacement in the impact depth is reduced about 17％. The vertical displacement is decreased about 5% and the value of maximum vertical stress is reduced about 35%.The total settlement is not affected by the thickness of geocell layer, but the horizontal displacement is affected distinctly by the thickness. And the effect of treatment is influenced lightly by the different arrangement place at the same case. Combined with engineering practice, the results of field measurements are contrasted with FEA. It is effective to reinforce shallow saturated loess with geocell.