The main objective for this study is to determine the relationship between pile spacing and p-multipliers (fm - pile-to-pile modulus multiplier) for a laterally loaded pile-group.  In addition, the appropriate p-multipliers for a 3-pile group configuration at 2D, 4D, 6D and 8D pile spacing is also determined. Therefore, a three-dimensional finite element approach was used to assess the lateral pile and pile group response subjected to pure lateral load. Results of the influence of load intensities, group configuration, pile spacing are discussed in terms of response of load vs. lateral displacement, load vs. soil resistance and corresponding p-y curves. The improved plots can be used for laterally loaded pile design and also to produce the group action design p-multiplier curves and equations. As a result, design curves were developed and applied on the actual case studies and similar expected cases for assessment of pile group behavior using improved p-multiplier. A design equation was derived from predicted design curves to be used in the evaluation of the lateral pile group action. It was found that the group interaction effect led to reduced lateral resistance for the pile in the group relative to that for the single pile.