Wind loads, Seismic loads, Eccentric loads on columns, Water pressure, Slope movements, Impact loads from ships (Pier collision, berthing, etc.), Cable forces on transmission towers, River currents, and other factors may all produce lateral load. Along with axial load, lateral loads must be considered while designing a foundation system. Lateral group capacity is generally calculated by lowering soil subgrade modulus and will not consider the effects of spacing between piles, lateral movement of piles, and number of piles. To investigate the effect of these parameters, the study is conducted by carrying analysis with the help of Plaxis 3D on 3 × 3, 4 × 4, and 5 × 5 pile groups considering 2D, 3D, 4D, 5D, and 6D spacing between piles and different deflection criteria of 6, 9, 12, 25, and 100 mm. The effect of these parameters on lateral group efficiency is also investigated. The study shows the lateral-load capacity of group piles increases as spacing between the piles and the number of piles in the group increase. As the spacing between the piles is increasing, lateral group efficiency is also increasing. As the number of piles increases in the group, lateral group efficiency decreases up to 4D spacing between piles after which it increases. As lateral displacement increases in a group, lateral group efficiency decreases. The results obtained from Plaxis 3D are compared with IS 2911, Reese and Matlock, and Poulos, and variation in the result is observed.