The presence of cavities in soil can be either natural, resulting from burial of organic materials, or manmade as a result of mining process and extraction of ores which may cause major civil engineering problems. After several years, the decomposed buried debris leaves a cavity underground. The continuous flow of ground water can push the unconsolidated material into cavity resulting in variation in shape and size of cavity over time. Furthermore, the presence of cavities in soil at different location can lead to ground deformation and stress generation, which ultimately influence the nearby existing pile foundation. The aim of present work is to study the effect of location of cavities on the horizontally loaded pile inserted in layered soil through numerical modeling using PLAXIS 2D. The soil was modeled using Mohr–Coulomb criteria, and the effect of depth of cavity on ground deformation was examined. The results indicate that maximum horizontal deformation occurs when the cavity is formed near the ground surface.