Stone columns are considered as the most versatile ground improvement technique mainly in clayey soil which possess high compressibility and low shear strengths. The limitations of ordinary stone columns (OSC) have been overcome by encasing the same with 150 non-woven geotextile fabric. The load-bearing capability of the ground is increased by increasing the stone column's confinement. In the current experimental study, four different types of encasement lengths were considering with respect to diameter (D) of stone column, i.e., 2, 3 and 6 times of the diameter and fully encased length. Load-settlement curves and stress concentration ratio (SCR), which is defined as the ratio of stress carried by the SC to the stress in the surrounding soil, were obtained as per ASTM D2216-19 with the use of a pressure sensor which was attached at the contact of plate and soil bed. Initially, the pilot testing was carried out in the cylinder of height and diameter of 175 mm and 150 mm, respectively, to check the installation of encasement. Then unit cell mold of circular shape was designed for the installation of SC and large-scale direct shear test with ground plan of 300 mm × 300 mm and 150 mm height. It was used to determine the interface results between the SC material and geotextile. The load-carrying capacity of encased stone column (ESCs) is increased by 112.1% with encasement length of 6 times the diameter as compared to ordinary SC. Decrease in SCR also observed with increase in encasement length. Coefficient of interaction value for soil-aggregate interface is obtained as 0.592 by large direct shear test. This suggests that the interaction between the soil and aggregate is significantly reduced by using geotextile.