Lime treatment is a widely applied technique in improving the workability and geotechnical properties of soil. The water retention property and microstructure are highly related to the hydro-mechanical behaviour of unsaturated lime-treated soil. In this study, the water retention property and the evolution of pore size distribution (PSD) along the water retention curves (during drying) were studied for a lime-treated soil, with emphasis put on the curing time and salinity effects. Two soil powders with different soil salinities were prepared and stabilised by 2% lime. The chilled-mirror dew-point hygrometer and the contact filter paper method were used to measure the total and matric suctions, respectively. The PSD of lime-treated soil at various water contents was obtained using mercury intrusion porosimetry (MIP). Results showed that the matric suction increased significantly, while the total suction varied slightly during curing. At a given curing time, the specimens with higher salinity exhibited higher matric and total suctions. The difference between the soil water retention curves (SWRCs) determined by the filter paper method and from the PSD became more significant at longer curing time, as the production of cementitious compounds did not contribute to the SWRC from PSD, but contributed to the increase of matric suction measured by the filter paper method. The PSD of lime-treated soil changed from bi-modal characteristics (w > 14 %) to tri-modal pattern (w ≈ 8 %), and finally recovered to bi-modal characteristics (w ≈ 3 %), due to the shrinkage-related cracking of the clay fraction. The lime treatment inhibited the clay shrinkage, whereas the curing time and salinity effects on the drying-induced microstructure were insignificant.