The evaluation of seismic-induced response in the porous seabed is a fundamental problem in geotechnical and coastal engineering. Although the ground motions generally include both horizontal and vertical components, most previous theoretical investigations assumed vertically propagating shear waves in a horizontally layered soil-rock system and simply ignored the effect of site response to vertical earthquake motion. In this paper, the dynamic response and instantaneous liquefaction of porous seabed, induced by vertical earthquake loading, is studied using an analytical method. The seabed is treated as a two-layer poro-elastic medium and characterized by the fully dynamic formulation of Biot theory. The analytical solutions for the response variables, such as induced displacement, pore pressure and vertical effective stress, are respectively derived and the mechanism of instantaneous liquefaction in the liquefiable sediment is investigated based on the excess pore pressure criterion. A set of parametric analysis is carried out to discuss the effects of seawater, seabed and earthquake parameters on the seismic response and maximum liquefaction depth. It is worth noting that the properties of surface seabed layer have significant influence on the seismic response and consequently the potential stability of the seabed, which is important in the analysis of foundations for offshore structures.