The interaction between pile and soil of discrete material piles composite foundation is studied. Experimental investigation indicates that the pile is damaged under some depth to the top. So the composite foundation is divided into 3 different sections: expanding
un-expanding and substratum. According to deformation compatibility condition
a new method to calculate the settlement of the composite foundation is deduced by elastic mechanics. An example is given; and the calculation result is consistent well with the on-the-spot monitoring result.