A pile foundation with ground improvement under the footing is a composite foundation with the objectives of enhancing the seismic performance and rationalizing the substructure by combining the pile foundation with ground improvement. Although the effectiveness of this method has been confirmed in previous studies for application to soft grounds, the applicability of this method to liquefiable grounds has yet to be fully investigated. In this study, therefore, centrifuge model tests and finite element analyses were conducted to clarify the effectiveness of this method and to ascertain the improvement in strength (stiffness) when the method is applied to a liquefiable ground. Firstly, in order to investigate the effect of an improved ground on the behavior of the pile foundation during liquefaction, dynamic centrifuge model tests were conducted for three cases with different strengths of the improved ground. Then, three-dimensional soil–water coupled finite element analyses of the centrifuge model experiments were performed to validate the applicability of the analytical method. After that, parametric studies, in which the strength of the improved ground and the input ground motion were changed, were conducted using the same analytical model. The results confirmed that the horizontal displacement of the pile heads was reduced by the improved ground even in the liquefiable ground, and that the effect of this reduction was more remarkable in cases of high stiffness of the improved ground. Furthermore, it was possible to reduce the bending moments at the pile heads by applying the ground improvement. However, since the bending moment at the boundary between the improved ground and the natural ground became the local maximum, there was an optimum stiffness of the ground improvement at which the maximum bending moment of the piles was reduced. This is because improving the ground around the pile heads has the same effect as extending the footing. It was thus concluded that the behavior of the pile foundation is similar to that of a composite foundation comprised of a caisson and group piles.