Groundwater movement is one of the most important elements in the construction and management of underground oil storage cavern. To control the groundwater flow, grouting is run in parallel with water curtains. But as traditional grouting is conducted within cavern before and after excavation, the effect of grouting is delayed and the injection sphere is limited in the rock mass. Therefore, it is desirable to introduce a more extensive and effective grouting. This article is to present the caly grouting, which was the first to be carried out in the construction of underground caverns for oil storage in Japan. After conducting the clay grouting, the effect was confirmed by ground water level and infiltration quantity to the caverns.