Cavity expansion and contraction solutions for cylindrical and spherical cavities in unsaturated residual soils are presented in this paper. Varying soil state in the plastic zone is accounted by a numerical approach, wherein an element-by-element discretization of the plastic zone of both expanding and contracting cavities is carried out. Unlike existing methods utilizing self-similarity technique, the solution procedure enables the prediction of entire soil-state at any stage of expansion and subsequent contraction. It is also applicable for both cavity creation and expansion problems. The approach adopts constant contribution of suction to effective stress (constant Xs drainage condition) for analysis. The analysis procedure is validated by interpreting the previously reported pressure meter test results in lateritic residual soil. The typical cavity expansion and contraction characteristics of unsaturated Indian lateritic soil were then examined using this solution procedure. The effect of initial soil-state on cavity limit pressure, plastic radius, reverse yield pressure, and reverse plastic radius are also presented.