Soil retaining structures are frequently used for various infrastructure projects. Use of soil reinforcement or geo-synthetics in these structures is proven to be effective. Earthquakes may cause negligible to severe damage which may cause failure of these structures. So earth retaining structures attract concern for earthquake resistant design. This paper focuses on the numerical analysis of reinforced soil retaining walls using finite difference programme, FLAC, under dynamic loading. In the analysis, behaviour of soil-wall interaction, soil-reinforcement interaction has also been considered. The displacement and earth pressure were analysed in order to measure the responses of the wall. Comparisons were made between conventional and reinforced soil wall. It was observed that the reinforcement affects the earth pressure as well as deformation of the retaining wall significantly. When number of layer increases, both the earth pressure and deformation decrease. The earth pressure and deformation also decrease with increase in length of the layer. Some parametric studies have also been done to understand the mechanism of reinforced soil retaining wall under dynamic loading. The results of this study reveal the advantages of reinforcement in order to reduce the damages caused by the earthquake. The study will be helpful to understand the behavior of soil-reinforcement-wall system.