Abstarct: The purpose of this research is to design and make a system for measuring soil moisture. For this purpose, a method of measuring soil moisture baxsed on varying dielectric of soil with varying moisture in it, is presented. The measurement tool includes two part, electric circuit and capacitive sensor. Capacitive sensor has two mextal rods that have the role of electrodes of a capacitor. Capacitive sensor is placed inside the soil and the soil has the role of dielectric for this capacitor. The electric circuit includes AD7746 IC and ATmega16L micro controller. With varying soil moisture, capacitance of capacitor change and it is measured by AD7745/46. The measured capacitance is shown by a 24-bit data. Control of AD7746 and processing of its output data were done by ATmega16L. ATmega16L is programmed with CodeVision compiler. The results of the measurements are shown on a LCD display. By analyzing the capacitance of this capacitor, it is possible to estimate soil moisture.