Gypseous soils are widely distributed and especially in Iraq where arid area of hot climatic is present. These soils are considered as problematic soils; therefore this work attends to improve the geotechnical properties of such soil and reduce the dangers of collapse due to wetting process. In this research, undisturbed soil sample of 30 % gypsum content from Karbala city is used. The Single Oedometer collapse test is used in order to investigate the collapse characteristics of natural soil and after treatment with 3%, 6%, 9%, 12% and 15% of Cutback Asphalt. Moreover, two selected additive percentages (9% and 12%) are used to evaluate the suitability of using the Cutback Asphalt for improvement of the bearing capacity of gypseous soils. A steel model box is used for this purpose, the treatment depth is equal to one and twice the footing width. The tests results showed that the total settlement of 25 mm of treated soil with (MC-30) material can be achieved at vertical stress lower than that value required for natural soil. Also, thickness of treated layer with (MC-30) material below the proposed foundation has a significant effect on the value of bearing capacity of the soil. The rate of salt dissolved (C.V) is extremely decreased especially at all percentages of Cutback Asphalt.  The best bearing improvement ratio is found at 9% asphalt and at a depth equal to foundation width. However, the Cutback Asphalt can be successfully used by 12% for collapse potential treatment while it is not suitable for improvement of the bearing capacity of gypseous soils.