The pile-bucket composite foundation represents an innovative foundation form that surpasses the horizontal bearing performance of both single bucket-shaped foundations and pile foundations. The intricate interplay between piles and buckets introduces the complexity of the factors influencing the bearing performance of composite foundations under horizontal loads. In this paper, the indoor model tests were conducted to investigate the effects of relative density and pile-to-barrel diameter ratio on the horizontal bearing capacity and surrounding soil pressure of the pile-bucket composite foundation. A sensitivity analysis on the bearing characteristics of the pile-bucket foundation was performed using ABAQUS/CAE 2020 software. The results reveal a consistent variation in load–displacement curves across diverse diameter ratios of piles to buckets. The pile-bucket diameter ratio significantly impacts the horizontal bearing characteristics of the composite foundation. Reducing the pile-bucket diameter ratio improves the horizontal bearing capacity of the composite foundation. When the diameter ratio of piles to buckets diminishes to ≤0.317, the influence of this ratio on bearing performance becomes markedly pronounced. The displacement range of the surface soil decreases with an increase in relative density, while the influence depth of the surrounding soil of the composite foundation significantly decreases as the pile-to-barrel diameter ratio decreases.