The paper brings out the influence of relative density of foundation soil on performance improvement of geocell reinforcement; through model load tests on geocell-reinforced and unreinforced sand beds. Tests were carried out for five different relative densities of sand (30, 40, 50, 60, and 70%). The test results indicate that the beneficial effect of geocell reinforcement, in terms of increase in stiffness, bearing capacity, and load dispersion angle of the foundation bed, is present over a wide range of relative density; however, it is higher for dense condition of foundation soil. With geocell reinforcement offering three-dimensional confinement, the dilation induced benefit is substantially high for dense soil fill. Therefore, for effective utilization of geocell reinforcement, the foundation soil should be compacted to higher density.