The present design method in various codes for axially loaded piles embedded in consolidating soil is not satisfactory. It is too conservative in calculating the maximum pile force. Furthermore, the additional pile settlement due to the consolidation is neglected in ascertaining whether the requirements of allowable settlement have been met. This is because the behavior of such piles is not well understood. A new step-by-step design method based on the combination of results of extensive parametric studies of an elastoplastic load transfer model incorporating pile–soil slip reported previously is presented. In contrast to the iterative procedure required by some existing methods to determine the neutral plane location, these design charts can be used to determine the pile top settlement, neutral plane location, and maximum pile load directly. Further saving in the design of pile foundation is obtained with the concept of a compensating-pile foundation.