Abstract: In the analysis of lateral response of adjacent piles due to tunnelling, the elastic-plastic solution of tunnel-pile interaction is given based on p-y curve considering nonlinearity of pile-soil interface. The finite difference method and the concept of limiting force profile are used during calculation. For pile groups, the p-y curve of each pile in the pile groups is obtained using p-mutiplier (f_m). Then the results of pile deformation, rotation, bending moment and shear force can be given under axial force using the finite difference method. Moreover, the results obtained by the present method are compared with those from existing tests and case histories. The results show that there is a good agreement between the present computed profiles and test/field data. In the analysis of lateral response of adjacent piles due to tunnelling, the lateral response of the leading row piles in the pile groups is identical to that of the corresponding single pile. The tunnelling effects of the rear piles are lower than those of the front piles due to a positive pile group effect.