A diaphragm wall, sometimes referred to as a slurry wall, is an in situ reinforced concrete wall built through the use of a deep trench excavation method. In deep foundation systems for buildings, bridges, tunnels, and other civil engineering projects, it is frequently employed as a structural component. Excavation of tunnels in close proximity to diaphragm walls can have significant effects on the wall behavior and on the proximity of the surrounding soil. The installation of diaphragm walls is crucial as it influences the stress distribution in the soil and can lead to ground movements during and after excavation. The excavation depth and the type of retaining system, such as a diaphragm wall, play a key role in minimizing the induced responses in tunnels adjacent to the excavation site. The aim of the current study is to check the effect of excavation of different cross-sectional shapes of tunnel on the diaphragm wall using the finite element method. The deformation behavior of the ground surface during tunnel excavation has been studied in saturated soil. Different types of soil, viz. fine-grained soil and coarse-grained soil, have been considered for this study. When diaphragm walls are taken into account adjacent to the tunnel, the vertical deformation of the ground surface increases marginally with an increase in the depth of tunnel.