In this paper, the deformability of line pipe with local metal loss was examined. A full-scale experiment and a finite element (FE) analysis were carried out for line pipe with local metal loss subjected to an axial compressive load. As a result, a good agreement was obtained between the analytical and experimental results. This indicated that the present analytical method was applicable to evaluate the deformability of line pipes with local metal loss subjected to a large ground movement. Parametric studies were then conducted to clarify the relationship between the geometry of the local metal loss and the deformability using the FE analytical method.