The invention discloses a method for treating a collapsible loess foundation by a vibration rod compacting method. The method for treating the collapsible loess foundation by the vibration rod compacting method comprises the following steps of (1) construction preparation, (2) vibration point positioning, (3) vibration and liquid injection, (4) vibration sinking, (5) down-hole vibration remaining, (6) vibration lifting, (7) backfilling and reverse inserting and (8) lifting completion. During the construction, according to pre-designed vibration point spacing, a triangle or square point distribution method is adopted, and the vibration point construction is carried out in sequence until the construction of a reinforcement area is completed. An injecting liquid in the vibration is an industrial waste liquid and can react with components such as calcium carbonate in the loess, and thus the "softening" of a soil body is accelerated, and the vibration sinking of a vibration wing is facilitated. The time of the down-hole vibration remaining is not less than 10 s. The number of times of a backfilling and reverse inserting process is at least one. The range of the vibration point spacing is 1.0 m-1.8 m. When the collapsible loess foundation is treated by the method for treating the collapsible loess foundation by the vibration rod compacting method, no additional padding is needed, the economic benefits are obvious, and the construction is convenient and easy.