Abstract: The ground surface settlement and lateral deflection of retaining wall for deep excavations are calculated using nonlinear finite element method. The interaction of soils and retaining walls, soils and buried pipelines are simulated by an interface element with thickness. The stress and strain equations for the interface are established. The effect of ground settlement and lateral deflection on damage of buried pipelines is studied. Examples show that the damage effect of deep excavations is great, and a method is suggested to resolve the problem in design of retaining structures.