<p>The present paper proposes a method for predicting the nonlinear shielding effects on the lateral response of rear piles in a pile group due to the presence of piles in the front row, during tunnel construction. Governing differential equations have been developed for nonlinear soil behaviour using Pasternak’s two-parameter model in the Two-Stage Analysis Method. Also, a method of solving the complex differential equation using the finite difference method has been proposed. The outcome of the present nonlinear soil-pile-tunnel interaction results has been compared with those in the published literature and validated using a Finite Element (FE) model, yielding good agreement. It has been observed that the rear pile response due to tunnelling was substantially reduced due to the presence of the front pile and its shielding effect on ground deformation. Consideration of nonlinear soil behaviours in Pasternak’s two-parameter model, with a shear layer, provides a more accurate response of piles in the pile group. During real-life execution, preventive measures may be required to mitigate the response of the pile and to protect the structure above it from any distress due to tunnelling activities adjacent to the pile foundation.</p>