For many decades the analysis of earth retaining structures under dynamic or seismic conditions has been carried out by means of standard limit equilibrium (Coulomb, M-O) or elastic methods (Wood, Veletsos and Younan). These approaches are simplified, as they make use of considerable approximations which are often applicable only under particular conditions. A different and perhaps more realistic approach is possible using established computer codes, which integrate numerically the governing equations of the soil and wall media. Since these problems may involve significant levels of strain in the backfill, material non-linearity should be taken into account to realistically simulate the response of the system. In the herein-reported study, a parametric analysis is carried out through the finite-difference code FLAC 5.0. Starting from simple cases involving elastic response, and moving gradually towards more realistic conditions, salient features of the dynamic wall-soil interaction problem are addressed. The case of non-linear hysteretic behaviour of soil and flexibility of wall is considered at a second stage. Results indicate that with increasing levels of acceleration, there is a clear transition from elastic behaviour (in which the aforementioned V-Y type methods are applicable), to plastic behaviour in which M-O methods are thought to be more suitable under pseudo-static conditions. The results of the parametric analyses are reported in terms of pertinent normalized parameters, to provide a general framework for the assessment of wall-soil dynamic interaction under strong seismic excitation