This paper presents the results of deformation measurement and numerical analysis carried out to study the behaviour of the rock mass around large underground oil storage caverns. Displacements during excavation have been monitored using borehole extensometers which had been installed before the excavation of caverns proceeded. Numerical analysis has been carried out to examine the three-dimensional behaviour of rock and the face advance effect. The input parameters for this analysis were determined from the results of laboratory and field tests. The deformation modulus of the rock mass was determined from plate loading test at the site and in-situ stresses were measured from the overcoring method with USBM deformation gauge. The results from this study gave a clear picture for three-dimensional behaviour of the rock mass, hence would be used for the optimum design.