Dinar Basin was shaken by an earthquake with a magnitude of 5.9 on Oct 1. 1995. During the main shock, 59 local people died and structural damage occurred in Dinar town. Surface subsidence and sand volcanoes were observed on ground surface around railway route approximately extending 1 km in length. A comprehensive geotechnical investigation including borings, in-situ tests (SPT and CPT) has been carried out to study the effects of local soil conditions and liquefaction susceptibility of the soil layers. The insitu tests and index properties of soil layers have revealed that loose sandy and soft silty, clayey soil layers were dominant in the liquefied zone. The liquefaction susceptibility of the deposit has been studied using methods based on insitu test.