Sediments undergoing compaction exhibit transversely isotropic (TI) elastic properties that are described by five elastic constants. Continuous determination of all five constants in the laboratory during compaction is a difficult task. In this paper, we present a new experimental apparatus, the phased array compaction cell, for measuring the TI elastic properties of clay-rich sediments under uniaxial strain consolidation conditions. This apparatus uses matched sets of P-and S-wave ultrasonic transducers located along the sides of the sample and an ultrasonic P-wave phased array source together with a miniature P-wave receiver on the top and bottom ends of the sample. The phased array provides plane P-waves that are used to measure phase velocities over a range of angles. From these measurements, the five TI elastic constants can be recovered as the sediment is compacted, without the need for sample unloading, re-coring, or reorienting. Descriptions of the apparatus, data processing and an application demonstrating recovery of the evolving TI properties of a compacting marine sediment sample are provided in this paper.