The analysis of laterally loaded piles in soft clay is carried out idealising the pile as beam elements and the soil by nonlinear inelastic spring elements modeled with elasto-plastic sub-elements. The nonlinear hyperbolic model for static load condition is developed based on the undrained shear strength and modulus of subgrade reaction. An iterative procedure is adopted to perform a nonlinear finite element analysis and the effect of static lateral load on deflection is studied. Based on the lateral deflection at the end of first cycle (static load), the degradation factor is assumed and the p-y curve is modified. The cyclic load analysis is carried out using the static analysis program idealising the soil by modified p-y curve, which considers the effect of number of cycles and magnitude of cyclic lateral load. The results of the proposed analytical model compare well with the published experimental results, on piles subjected to one-way cyclic loading for different magnitude of cyclic lateral load and number of cycles. Copyright © 1996 Elsevier Science Ltd.