Steel sheet pile walls are being widely used as earth retaining systems. Sometimes loose or soft soil layers are located in various depths in an excavation. This issue causes different effects on ground surface displacements, forces and moments acting on sheet piles and struts during excavation procedure, compared with a status that soil is totally uniform. These differences are not exactly considered in conventional design methods of sheet pile walls. In this paper, a deep excavation using finite element method is analyzed. Excavation’s depth is divided into three different layers. One of three layers is a loose soil layer and its position is modeled in three different situations, top, middle and bottom of the model. Obtained results are compared with results of excavation without the loose layer. The pseudo-static analysis is performed by applying 0.3g horizontal acceleration. The results indicate that when a loose layer is located beneath stiffer layers, bending moments acting on sheet pile wall and shear forces increase about (50~100)% and (15~50)%, respectively. Also, the middle loose layer changes the location of maximum lateral deformation of steel sheet pile wall.