Pile foundations play a crucial role in stabilizing structures built on weak or compressible soils, such as soft clays and marine sediments. They are integral to the construction of bridges, abutments, tall buildings, heavy industrial machinery, petrochemical plants, and compressor stations, providing the necessary support and load-bearing capacity in challenging ground conditions. These piles experience dynamic lateral loads from operating machinery, ocean waves, wind, and earthquakes. Predicting their behavior under such dynamic loading depends on factors including soil properties (such as shear modulus and material damping), pile dimensions, operational frequency, and strain levels. The dynamic interaction between soil and piles significantly influences the response of pile-supported structures. The soil-pile system exhibits nonlinearity under dynamic loading, even at low frequencies. When exposed to dynamic lateral loads, pile groups behave nonlinearly, leading to wave reflection and refraction between piles and a reduction in soil stiffness. This interaction is more complex than that observed under static and cyclic loading conditions. The lateral response of piles is often evaluated using the assumption of linear soil behavior. Various numerical methods, such as the subgrade reaction method, lumped mass idealization method, FEM, and Winkler method, are discussed in the existing literature. This article presents a transient literature review on the analysis of dynamic soil-pile interaction in laterally loaded piles.