The soil moisture content at shearing and other factors, including dry density and grain size, influence its shear strength. This study investigated the effect of moisture content at compaction and grain size distribution on the unsaturated soil shear strength. Triaxial compression tests were performed in the laboratory using the modified triaxial apparatus on silica sands No. 3 and 6 without fines and with 20% fines to explore the unsaturated soil shear strength characteristics. Test samples were compacted and sheared at various combinations of the soil’s optimum and residual moisture content. The analysis of the triaxial compression test results shows that moisture content at compaction and the grain size distribution influence the unsaturated soil shear strength. The test samples compacted at optimum moisture content showed higher peak shear strength when sheared at residual moisture content. Further, test results show that the test samples of soil without fines, when compacted at residual moisture content, show higher peak shear strength at optimum moisture content. The finding of this study endorses considering the moisture content at compaction for the geotechnical design of structures while predicting the soil shear strength.