Pile punching (or driving) affects the surrounding area where piles and the adjacent piles can be displaced out of their original positions due to horizontal loads, leading to hazardous outcomes. This paper presents a 3D coupled Smoothed Particle Hydrodynamics and Finite. Element Method (SPH-FEM) model, which was established to investigate pile punching and its impact on adjacent piles subjected to lateral loads. This approach handles the large distortions by avoiding mesh tangling and remeshing, contributing greatly high computational efficiency. The SPH-FEM model was validated against field measurements. Results of this study indicated that the soil type in which piles were embedded affected the interaction between piles during the pile punching. A comprehensive parametric study was carried out to evaluate the impact of soil properties on the displacement of piles due to the punching of an adjacent pile. It was found that the interaction between piles was comparatively weak when the piles were driven in stiff clays; while the pile-soil interactions were much more significant in sandy soils and soft clays