Abstract In this case study of a soil nail retaining wall, the measured horizontal displacement is of the order of 0.023% H, where H is the excavation depth, while the two-dimensional Finite Element Method (FEM) analysis suggests horizontal displacements of the order of at least 0.5% H. This study aims to understand which parameters influence such displacements through a Sensitivity Analysis. In addition, the study compares results obtained through two-dimensional and three-dimensional FEM analyses for this case. It concludes that Young's Modulus (E) and the in-situ earth pressure coefficient (K0) are the two parameters that most influence such displacements. This study shows that Mohr Coulomb's perfectly plastic Elastic Constitutive Model is unsuitable for simulating this structure, which had minimal displacements in situ, suggesting the Hardening Soil model (Schanz et al., 1999) as a viable alternative. Compared to 3D analysis, 2D analysis showed significantly larger horizontal displacements. This led to the conclusion that 2D analysis in MEF is unsuitable for predicting lateral displacements unless a Reduction Factor (FR) ranging from 0.4 to 1.0 was applied.