Time and frequency domain analysis of waveforms obtained from bender/extender element testing of soil specimens in laboratory are the two commonly used methods for determination of shear and compression wave velocities (Vs and Vp, respectively). However, in case of compacted and stiff clayey soils, researchers have found it very difficult to interpret Vs and Vp by using these methods. This is due to the complexities (viz., crosstalk effect, electromagnetic coupling, near field effect, wave attenuation, noise level etc.) present in the waveforms. In order to overcome this problem, some of the researchers have implemented a combined bender element and accelerometer testing system. However, such study in literature is very scanty. Keeping this in view, the present study is undertaken for the interpretation of Vs and Vp in compacted clay by using bender/extender element vis-à-vis an accelerometer. Different techniques such as start-to-start, peak-to-peak, cross correlation, frequency domain and sine sweep method were used for interpretation of the test results. Comparison of the results obtained from these methods is presented in this paper. The sine sweep method of analysis was found to be reliable and not much affected by the input triggering frequency unlike the time and frequency domain analysis. Further, to understand the discrepancies in results from different methods, numerical 2D plain strain finite element (FE) models were created and characteristics of output waveforms were studied within the framework of time domain analysis. However, the deviation of results obtained from the FE method was found to be less (within ±11%) as compared to that obtained experimentally.