Based on the conception of dynamic shape function, a finite dynamic element method (DEM) is developed for the computation of dynamic consolidation. Formulae of the DEM are also derived. This method overcomes the shortcomings of conventional finite element methods, i.e., the vibration characteristics of the soil to be consolidated cannot be considered. Therefore, it practically reflects the dynamic characteristics of consolidation. The programs for the DEM are also written. Results of practical calculation show that the method is correct and feasible.