The most widely used analysis method for the laterally loaded pile problem is the Winkler spring approach. Although researchers have proposed nonlinear formulations for the p-y curves, the contribution of the soil nonlinearity has not been thoroughly studied. The main drawback of the current approach is the use of a single stiffness in the p-y formulation. This study investigates the laterally loaded pile problem by employing the pressure-dependent hardening soil model with small-strain stiffness (HS-Small Model), where the degree of soil nonlinearity is better integrated. The parametric analyses are performed on the verified model for various pile and soil properties. A new p-y model is proposed for pile behaviour under monotonic loading based on the numerical analysis results. The model includes the initial stiffness, ultimate soil resistance, and degree of nonlinearity parameters. The validity of the proposed model is demonstrated by simulating a centrifuge and two field tests from the literature. The proposed model accurately accounts for soil nonlinearity and significantly improves the estimation of lateral displacements.