Dynamic compaction (DC) is a useful method for improvement of granular soils. The method is based on falling a tamper (weighting 5 to 40 ton) from the height of 15 to 30 meters on loose soil that results in stress distribution, vibration of soil particles and desirable compaction of the soil. Propagation of the waves during tamping affects adjacent structures and causes structural damage or loss of performance. Therefore, determination of the safe or critical distance from tamping point to prevent structural hazards is necessary. According to FHWA, the critical distance is defined as the limit of a particle velocity of 76 mm/s. In present study, the ABAQUS software was used for numerical modeling of DC process and determination of the safe distance based on particle velocity criterion. Different variables like alluvium depth, relative density, and impact energy were considered in finite element modeling. It was concluded that for alluvium depths less than 10 m, reflection of the body waves from lower boundaries back to the soil and resonance phenomenon increases the critical distance. However, the critical distance decreases for alluvium depths more than 10 m. Moreover, it was observed that relative density of the alluvium does not significantly influence the critical distance value.