Piled raft foundation is an economical foundation system where the bearing capacity of the raft is taken into consideration in supporting the loads from superstructure. The piles in a piled raft system are used to enhance the bearing capacity of the raft and also to control settlement, especially differential settlement and hence, these piles are commonly known as ''settlement reducing piles''. In this paper nonlinear finite difference analysis was carried out to model the piled raft problems using the commercial software "CSI SAFE." A comprehensive parametric study was performed on a piled raft. The variation was made in thickness of raft & grade of concrete of raft. The effect of these variables upon the average settlement and differential settlement was studied.