The dynamic response of pile in layered soil is theoretically investigated when considering the transverse inertia effect. Firstly, the fictitious soil-pile model is employed to simulate the dynamic interaction between the pile and the soil layers beneath pile toe. The dynamic interactions of adjacent soil layers along the vertical direction are simplified as distributed Voigt models. Meanwhile, the pile and fictitious soil-pile are assumed to be viscoelastic Rayleigh-Love rods, and both the radial and vertical displacement continuity conditions at the soil-pile interface are taken into consideration. On this basis, the analytical solution for dynamic response at the pile head is derived in the frequency domain and the corresponding quasi-analytical solution in the time domain is then obtained by means of the convolution theorem. Following this, the accuracy and parameter value of the hypothetical boundaries for soil-layer interfaces are discussed. Comparisons with published solution and measured data are carried out to verify the rationality of the present solution. Parametric analyses are further conducted by using the present solution to investigate the relationships between the transverse inertia effects and soil-pile parameters.