The dynamic characteristics of embedded foundation on pile group are examined analytically. Three dimensional formulation based on the volume method is employed to investigate the dynamic behavior of soil-piles-structure system with taking into account of embedment effect of foundation. The analysis method is verified using the results of the forced vibration test and the earthquake observation of 2×2 pile group foundation. Earthquake response of the structure on embedded foundation supporting by pile group is analyzed, in order to investigate the embedment effect on the inertial and kinematic interaction on pile stress.