In this study, a series of reduced model tests was conducted on soil foundations reinforced by Geosynthetic-Encased Granular Columns (GECs) placed across a reverse fault. These tests aimed at evaluating the effectiveness, reinforcing mechanism and optimal GEC horizontal spacing to mitigate the ground surface deformation associated with reverse faulting. For comparison, reduced model tests were also performed on unreinforced and Geosynthetic-Reinforced Soil (GRS) foundations. The reduced model tests were conducted to simulate a prototype 3-m-thick foundation layer subjected to a reverse fault displacement of 0.9 m. Digital Image Analysis (DIA) techniques were adopted to determine the surface displacement profile, angular distortion and shear rupture propagation considering various reverse fault offsets. Test results revealed that the GEC foundation can considerably reduce the fault-induced angular distortion at the ground surface. A reduction of 23.3% on the maximum angular distortion at the ground surface was observed as the fault displacement reached 30% of the foundation height (S/H = 30%), indicating the GEC foundation can mitigate the risk of surface fault hazards associated with large reverse fault movement. Two mechanisms, shear rupture diffusion and diversion effects, were identified for the GEC foundation, depending on the magnitude of the fault displacement and the system stiffness of the GEC foundation. Because of complex mechanisms between diversion and diffusion of the shear rupture in the GEC foundations, an optimal GEC spacing of Sh/dc = 3.3 was observed, which exhibited the most significant reduction in βmax at large fault offsets.