Recently it is recognized that the effects of structure-soil interaction(SSI) on the response of structures are important in the dynamic analysis of structures. In this study, theoretical and experimental investigations were performed to study the SSI effects(mainly inertial interaction) on the dynamic response of buildings utilizing the finite element foumulation. Theoretical studies were performed with two idealized buildings(stubby one and slender one) built on the homogeneous soil layer and having the small embedment ratio. Experimental investigations were also carried out for two buildings built on the pile foundation in Mexico City, experienced the 1985 Earthquake. The results of this study show that the SSI effects are significant on the response of structures due to the change of fundamental frequency and effective damping ratio, and that it is necessary to include the SSI effects on the dynamic analysis of structures.