Soil nailing is a widely used technique for stabilizing slopes and excavations. In all current design methods, the nail-soil interface shear strength, that is, the pull-out resistance of a soil nail is an important parameter which controls the design and safety assessment of the soil nailing system. The pressure grouting is a cost effective method for increasing the soil nail pull-out resistance and in turn improving the performance of the nailed structure. In this paper, a three dimensional (3-D) finite element (FE) model for pull-out tests is established and verified by comparing simulated results with measured data. This model is then used to simulate the effect of grouting pressure on the soil nail pull-out resistance.