A novel plane strain approach is introduced to model the behaviour of embankment foundations on soft clay stabilised with vertical drains, where the classical axisymmetric solutions are converted to an equivalent plane strain model, incorporating the effects of smear and well resistance. This paper describes the behaviour of an embankment stabilised with vertical drains, where a specific case history is selected from Malaysia. The consolidation of soft clay is modelled on the basis of the modified Cam-clay. The settlement behaviour at various stages of embankment loading is analysed using the finite element technique, and the numerical results are compared with field measurements. The behaviour of drains with and without smear is also compared. Inclusion of smear effect in the mathematical model improves the prediction of settlements.