Composite soil-nailing is a new technology developed from abroad in recent years, to be used in excavation of soil, slope stability. This paper studied the stress and deformation of composite soil nailing wall by nonlinear FEM. According to the structure characteristic, the finite element analysis for composite soil nailing construction process is carried out. Based on geotechnical elastic-plastic constitutive model, the adopted failure criterion was a composite Drucker-Prager criterion with tension cut-off. A kind of rotational Goodman interface element is employed to simulate the behavior of interface between the soil-mixed cement which forms the barrier of seepage flow along the boundary of foundation pit, and soil ground. Through the comparative analysis with on-site monitoring data, the finite element calculation results have good precision.