Basic problem of pile foundation is three dimensional in nature. Three dimensional finite element formulation is employed for the analysis of pile groups. Pile, pile-cap and soil are modeled using 20 node element, whereas interface between pile or pile cap and soil is modeled using 16 node surface element. A parametric study is carried out to consider the effect of pile spacing, number of piles, arrangement of pile and soil modulus on the response of pile group. Results indicate that the response of pile group is dependent on these parameters.