The paper presents an analytical solution for the vertical dynamic interaction analysis of a poroelastic soil layer and an embedded pile with the consideration of pile-soil radial deformations. The soil is treated a three-dimensional porous continuum and described by the Boer’s poroelastic model, while the pile is treated as a two-dimensional rod with both radial and vertical deformations of which the equation of motion is derived by the Hamilton’s variational principle. Without the introduction of potential functions, first take the volumetric strain of soil skeleton and pore fluid pressure as intermediate variables to deal with the equations of motion for the soil and then use the separation of variables to solve the equations of motion for the soil and the pile. By imposing the boundary and continuity conditions of the pile-soil system, the dynamic impedance in frequency domain and the velocity response in time domain of the pile top are obtained. The present solution is then verified by comparing with the corresponding finite element model computation results and the existing solutions. The effects of the pile-soil parameters on the dynamic characteristic of the pile-soil system are also analyzed. Some significant conclusions are drawn, which can provide useful reference for related engineering practice.