Expanded polystyrene (EPS) geofoams are being widely used in civil engineering. They are mainly used to construct embankments over weak sub soils because of their light weight property. Embankment constructed with geofoam as fill material typically consists of geofoam blocks with a load distribution slab and a soil cover above it. Settlement of such embankments is critical in the design due to high compressibility of geofoam. In this paper, finite difference program (FLAC - fast lagrangian analysis of continua) is used to obtain the settlements at the top of embankment due to applied loading. Live loads as per ASSHTO specifications are applied on the embankment. The numerical model is also used to analyze the vertical stresses on geofoam due to applied loading. Parametric studies are performed for various thicknesses of soil cover above geofoam (30 cm, 75 cm, and 100 cm), and for two different values of elastic modulus of geofoam (1 MPa and 10 MPa). © ASCE 2015.