The main focus of the current study is to evaluate the dynamic behavior of a cantilever retaining wall considering backfill and soil/foundation interaction effects. For this purpose, a three-dimensional finite element model (FEM) with viscous boundary is developed to investigate the seismic response of the cantilever wall. To demonstrate the validity of the FEM, analytical examinations are carried out by using modal analysis technique. The model verification is accomplished by comparing its predictions to results from analytical method with satisfactory agreement. The method is then employed to further investigate parametrically the effects of not only backfill but also soil/foundation interactions. By means of changing the soil properties, some comparisons are made on lateral displacements and stress responses. It is concluded that the lateral displacements and stresses in the wall are remarkably affected by backfill and subsoil interactions, and the dynamic behavior of the cantilever retaining wall is highly sensitive to mechanical properties of the soil material.