This paper shows the development of an approximate analytical solution of radial consolidation by prefabricated vertical drains with a threshold gradient. To understand the effect of the threshold gradient on consolidation, a parametric analysis was performed using the present solution. The applicability of the present solution was demonstrated in two cases, wherein the comparisons with Hansbo’s results and observed data were conducted. It was found that (1) the flow with the threshold gradient would not occur instantaneously throughout the whole unit cell. Rather, it gradually occurs from the vertical drain to the outside; (2) the moving boundary would never reach the outer radius of influence ifR+1<n, whereas it will reach the outer radius of influence at some time; (3) the excess pore pressure will not be dissipated completely, but it will maintain a long-term stable value at the end of consolidation; (4) the larger the threshold gradient is, the greater the long-term excess pore pressure will be; and (5) the present solution could predict the consolidation behavior in soft clay better than previous methods.