Abstract: The influence of geotextile on vertical settlement of road embankment is studied with nonlinear finite element method. By comparative computing of the unreinforced road embankment with reinforced one, it is shown that road embankment on soft soil foundation can be reinforced with geotextile effectively when the width of road is small. With that conditions, the vertical increment displacement can be reduced with geotextile, and the vertical displacement can be decreased 12% -16%, the stability of road can be increased more than 20%. While the width of road increased, the influence of geotextile on the vertical settlement of road embankment decreased, which regarded as dimension effect. Therefore, whether geotextile can minish vertical settlement of road embankment or not should be analyzed with reality condition. Furthermore, the limitation of conventional limit equilibrium method in studying embankment reinforced with geotextile is analyzed. It is necessary to develop nonlinear finite element method in studying on the interaction of soil and geotextile.