The goals of this study are to investigate the feasibility of the reference state approach in determining the generalized soil-water characteristic curve that is essential for characterization of unsaturated soil behavior. The soil-water characteristic curves are obtained from a number of specimens of fine-grained residual soils compacted with different void ratios. Based on the experimental test results, the feasibility of using the liquid limit state as the reference state for predicting the soil-water characteristic curve are verified. Finally, through the regression analysis of experimental data using the equation of Fredlund and Xing (1994), a reliable method is proposed to predict the generalized soil-water characteristic curve of fine-grained residual soils using the liquid limit state as the reference.