Granular pile (stone column) is used to increase the soil’s stiffness, shear strength, and bearing capacity, which helps to reduce settlement and to accelerate consolidation of soft soil. This study deals with a single enclosed granular pile (GP) installed in soft clay. The goal is to use a finite element model (FEM) in PLAXIS 2D software to analyze the effects of encasement and its characteristics to compare with non-encased piles. Encased granular piles (EGP) with geotextile surrounding them and ordinary granular piles (OGP) without any encasement are examined. The evaluation of the changes in factors, such as the angle of internal friction of the granular material, the stiffness of the geogrid, and the length-to-diameter ratio (L/D) of the pile, is conducted by a parametric investigation. The bulging characteristics and load settlement graph have been evaluated in the study. The risk of bulging can be decreased by using geosynthetic materials on the granular pile for reinforcement.