A proper physical modeling of infilled building frame-foundation beam-soil mass interaction system is needed to predict more realistic and accurate structural behavior under static vertical loading. This is achieved via finite element method considering the superstructure, foundation and soil mass as a single integral compatible structural unit. The physical modelling is achieved via use of finite element method, which requires the use of variety of isoparametric elements with different degrees of freedom. The unbounded domain of the soil mass has been discretized with coupled finite-infinite elements to achieve computational economy. The nonlinearity of soil mass plays an important role in the redistribution of forces in the superstructure. The nonlinear behaviour of the soil mass is modeled using hyperbolic model. The incremental-iterative nonlinear solution algorithm has been adopted for carrying out the nonlinear elastic interaction analysis of a two-bay two-storey infilled building frame. The frame and the infill have been considered to behave in linear elastic manner, whereas the subsoil in nonlinear elastic manner. In this paper, the computational methodology adopted for nonlinear soil-structure interaction analysis of infilled frame-foundation-soil system has been presented.