Soil arching, which occurs in the piled embankments, plays an important role in stress redistribution between the relatively soft subsoil and the stiffer piles. The formation of the soil arching depends on the differential settlement of the embankment fill above the pile and the subsoil. The soil arching effect is barely investigated in the literature from the perspective of differential settlement of piles and soils. Based on the discrete element method (DEM), this paper develops a classic trapdoor test model to investigate the differential settlement in piled embankment during the downward movement of the trapdoor, and to explore the formation mechanism of soil arching in equal settlement pattern by changing the width of the pile cap and the height of the embankment. Due to symmetry, only one section of the laboratory test model is simulated herein. It was found that the soil arching formed under the equal settlement pattern remained unchanged after a certain degree of development, and the height of the equal settlement did not change at 0.7(s-a), where s is the pile spacing, and a is the width of the pile cap. The height of the embankment (H) and the width of the pile cap (a) have a significant influence on the formation of the equal settlement pattern when the width of the trapdoor is kept constant. Both the decrease in “H” and the increase in “a” facilitate the differential settlement of the soil between the piles and the pile-soil, enabling the slip surface to develop upward gradually, thereby hindering the formation of the equal settlement pattern.