This paper presents the results of a numerical investigation on the behavior of earth retaining wall system with emphasis on the groundwater lowering. Using the 2D stress-pore pressure coupled analysis, the effects of ground excavation and groundwater interaction were examined using wall horizontal deformation, ground surface movement, plastic strain pattern, effective stress distribution and axial stress of strut. In addition, based on the results from a parametric study on a wide range of soil profile and initial ground water table level, the ranges of wall displacement and ground deformation were suggested quantitatively.