Earthquakes pose significant risks to underground infrastructure, particularly vertical pipelines critical for transporting fluids and gases in urban areas. Understanding these structures’ dynamic behavior and failure mechanisms during seismic events is essential for enhancing their resilience and ensuring uninterrupted post-disaster service. This study aims to explore the effects of earthquakes on vertical pipelines, focusing on the dynamic displacement responses under various seismic excitations. In this study, a novel experimental setup is developed, and analyses are conducted to investigate the dynamic responses between the vertical pipe section and the surrounding soil using various shake table tests. Frequency response analysis was performed by considering a vertical pipe section to provide insight into the dynamic displacement behavior of the vertical pipe, considering the effects of the soil. A laminar shear box was designed and used to simulate the free-field conditions to determine the impact on the cross-section of the vertical pipe due to the surrounding soil. The dynamic displacement is measured at different harmonic excitations and depths to assess the effect of the surrounding soil. This innovative equipment allows for the precise simulation of complex soil–structure interactions under realistic earthquake loading, thereby providing a detailed understanding of how vertical pipelines react and potentially fail under such dynamic conditions. Results from these experiments are expected to offer critical insights into developing improved design and construction practices for vertical pipelines, emphasizing enhancing their durability and functionality during and after earthquake events.