The various factors influencing the settlement of composite foundation have been more completely studied through numerical simulation. The influence on the settlement of composite foundation of the geometry and mechanical properties of the pile, soil, cushion, and the interface between pile and soil have been investigated through computer simulation, in which the contact elements with zero thickness are used. Some valuable conclusions for the settlement of composite foundation have been obtained: (1) The method using the contact element of zero thickness is successful when used in the simulation of the settlement of composite foundation; (2) Among the factors influencing the settlement of composite foundation, the compression modulus of the soil is the largest, and the cohesion of the soil is the second largest; (3) The effects on settlement of the internal friction angle of the soil, the elastic modulus, the radius, and the length of the pile, and the elestic modulus of the cushion are also more obvious.