Piled-Raft Foundation is a composite geotechnical construction that combines the bearing effect of both the foundation elements, i.e., raft and piles by taking into account interactions between the foundation elements and the subsoil. To study the behavior of such a foundation system in layered sandy soil under vertical load, an experimental program has been conducted in the laboratory by varying critical parameters such as thickness of top dense layer, length of piles, spacing between piles and number of piles. The experimental program includes the model tests on unpiled raft (H1/B = 0.3, 0.6), individual piles (L/D = 10, 40) and piled rafts of different configurations. Mild steel rods of 10 mm diameter were used as model piles and square shaped mild steel plates of size 180 mm and thickness 10 mm were used as model rafts. The improvement in the ultimate load carrying capacity is represented by load improvement ratio and reduction in average settlement is represented by settlement reduction ratio. The influence of thickness of top dense layer, length of piles, spacing between piles and number of piles on the load improvement ratio and settlement reduction ratio are presented, discussed and quantified using factorial experimentation. The results confirm that the load improvement ratio and settlement reduction ratio varies from 23–124% and 1–60% respectively for various configurations of piled raft foundation system.