Abstract-Effective learning in foreign language settings depends on acquiring a large number of vocabularies. This study intended to compare two vocabulary learning methods known as loci and rehearsal methods to find out which one leads to better retention and recalling of words. Employing a quasi-experimental research, 80 learners from two intact classes in Islamic Azad University, Osku Branch, Iran, were randomly selected as the experimental and control groups. For the purpose of vocabulary learning, the experimental group trained in loci method while rehearsal strategy training was used in the control group. At the end of each session of the treatment, multiple-choice vocabulary tests were used to measure whether the participants can recall the lexical items from their short-term memory. A delayed multiple-choice posttest of vocabulary was also used in order to compare vocabulary learning among two groups four weeks after the treatment. Implementing Independent Samples t-test, the results indicated that experimental group was better than control group in retention and recalling of lexical items in immediate posttest. It was also found that the loci method was more effective than rehearsal in permanency of lexical items in long term memory. Syllabus designers and textbook writers can consider different learning strategies in designing vocabulary books by taking the learners' proficiency level into account.