Abstract: There is much difference between the calculated results of ultimate earth pressure theory and the experimental ones. To solve this problem, based on the Rankine's earth pressure theory and the two-parameter method, an earth pressure method considering displacement effect, which can calculate active and passive earth pressures for both cohesive soil and non-cohesive soil, is proposed and validated by the experimental data. By combining the earth pressure method with the bending differential equation of underground structures, the internal force and displacement of the underground structures can be obtained through iteration. The process is analyzed by an example.