The stability of a pipeline has been extensively studied by coastal and marine geotechnical engineers in recent years. However, most previous investigations have been only concerned with the fluid field around the pipelines, not the wave-induced soil response below the pipelines. In this paper, a two-dimensional finite-element model is employed to investigate the wave-induced seabed response around a pipe laid on a poro-elastic seabed. Unlike conventional investigations, both soil permeability and Young’s modulus are considered to vary with soil depth in the present model. Based on the proposed model, the mechanism of the wave-induced pore pressure and effective stresses are explored.