Deep excavation, tunnelling and river tidal fluctuations are some activities that can induce lateral soil movements, which can detrimentally impact nearby existing infrastructure. One major design concern is that the behaviour and mechanisms of complex soil-structure interaction that occur in these situations are often still not well understood. Limited design methods are currently available to evaluate these problems in practice. Therefore, the latest development and understanding of soil-structure interaction involving pile foundations subjected to lateral soil movements are presented with reference to successfully implemented projects and research outcomes based on finite element modelling, centrifuge experiments as well as field observations and interpretations. The novel concept of passive pile behaviour and limiting soil pressure due to stress relief will be evaluated and explained in detail.