Olive Shane, 62, a retired program analyst with the Department of the Army, died of cancer Thursday at the Washington Hospital Center.

Miss Shane was born in Louisville and grew up there. She attended the University of Louisville and worked in the personnel section of the city's civil service agency.

She began her career with the federal government in 1946 when she took a job with the U.S. armed forces in Japan as an intelligence analyst. She was transferred to Washington in 1954 and continued her career with the Department of the Army.

Over the years, her duties included assisting in the arrangement of orientation courses for foreign military students and working as a research specialist in the office of the assistant chief of staff for intelligence.

At the time of her retirement in 1976, she was a program analyst in the office of the deputy chief of staff for operations.

Miss Shane attended night classes at American Universtiy and earned a bachelor's degree. She also took graduate cources at AU.

Before her retirement, she received the Outstanding Performance Award from the Army. She also was a member of the National Honor Society.

Miss Shane maintained a vacation home in Bryce Mountain, Va., and enjoyed the skiing there. After her retirement, she also traveled widely in the United States and in Europe. In Washington, she was active in groups to preserve rental housing.

Survivors include four brothers and three sisters, all from the Louisville area.

The family suggests that expressions of sympathy be in the form of contributions to the American Cancer Society.