Piled raft foundation is a type of foundation in which load is transferred by piles as well as by raft. Due to advancement in analysis piled raft foundations are classified as Connected Piled Raft Foundation (CPRF) and Disconnected Piled Raft Foundation (DPRF). In case of DPRF a cushion is placed between piles and raft which creates uniform pressure distribution on bottom of the raft and it modifies load transfer mechanism of piles. The DPRF ultimately increases the load sharing by raft which leads to overall economy. In this study, an attempt is made to investigate the influence of pile shape, thickness of raft and length of pile on vertical settlement and lateral displacement of CPRF. Another analysis is carried out to find the influence of thickness and modulus of elasticity of cushion on vertical settlement and stresses along pile length of DPRF. Effect of combination of CPRF and DPRF on vertical settlement and stresses along pile length is also studied. FEM is used along with ABAQUS to analyse the above-mentioned parameters. It is concluded that pile shape (circular and square) has no effect on vertical settlement of CPRF. With increase in raft thickness there is increase in settlement of CPRF and increase in pile length is inversely proportional to settlement of CPRF. It can also be concluded that DPRF reduces the stresses along pile length and concrete cushion has higher stresses as compared to EPS Foam Cushion. Finally, it is found that combination of CPRF and DPRF leads to more reduction of settlement and can be used as an alternative to CPRF.