Among the various ground improvement techniques, stone columns (SCs) are widely used for supporting flexible and light weight structures. Stone column derives its load carrying capacity from the confinement offered by the surrounding soil. Stone column fails due to bulging and its load carrying capacity can be increased by preventing lateral bulging. A detailed finite-element analysis on the behaviour of single stone column of 50 mm diameter is studied by varying parameters like loading area and shear strength of soft clay surrounding it. Finite-element analyses have been performed using 15-noded triangular elements with the software package PLAXIS. The effects of loading area and strength of confinement material on bulging response have been investigated in this study. The results indicated that the diameter of bulging decreased with increase in the loading area up to 3 times the diameter of the column, beyond which no substantial change in bulging diameter is noticed. Further, an increase in the strength of surrounding material results in a decrease in bulging shape and the position of the maximum bulging is shifted downwards.