Dynamic Compaction (DC) is a widely adopted ground improvement technique, particularly effective for granular soils. This study presents a hybrid approach combining fuzzy logic implemented via a Sugeno Inference System and Particle Swarm Optimization (PSO) to estimate and enhance the effective depth of DC. A fuzzy model was developed to evaluate the influence of key operational parameters, including tamper weight, drop height, radius, number of drops, grid spacing, and soil resistance. A symbolic regression-based correlation was proposed to estimate the improvement depth and was validated against the fuzzy model results. Parametric analysis revealed that the interaction between tamper weight and drop height is the most influential factor. Optimization using PSO resulted in a 33% increase in the maximum improvement depth without additional energy input. In addition, optimal design parameters were identified, including a tamper radius of 1.5–2.0 m, 25 drops per point, and a grid spacing of 6–7 m. This hybrid AI-based framework offers a practical alternative to conventional empirical DC design and demonstrates promising capability for improving design efficiency and parameter selection.