This paper presents an isolation pile–soil lateral interaction model that considers not only the relative linear sliding at the pile-soil interface but also the pile group–soil interaction. The model allows for the calculation of the pile–soil interaction force using the elastic continuum method combined with the displacement compatibility relationship at the pile–soil interface, thus enabling the total lateral ground displacement to be obtained. The proposed method is validated by comparisons with the elastic foundation method (EFM) and the boundary element method (BEM). The advantages of the proposed method in calculating the lateral ground deformation resisted by isolation piles are demonstrated. The mechanical mechanism of the isolation pile’s lateral resistance effect on ground deformation can be summarized as follows: the combination of positive and negative resistance effects drives the lateral ground displacements along the depth direction from the original inhomogeneity caused by the tunnel excavation to a relatively homogeneous state. The soil parameters including Poisson’s ratio, internal friction angle and ground volume loss; the isolation pile parameters including the distance of the tunnel axis from the pile axis, the pile length, the buried depth of the pile top and the relative pile bending stiffness; and isolation pile–soil interface parameters including relative pile shaft–soil stiffness and relative pile tip–soil stiffness all exert a significant influence on the lateral resistance effect of the isolation pile. In light of that the resistance effects at different depths below the surface are not uniform, it is of the utmost importance to assess the resistance performance of the isolation pile in accordance with the location and lateral deformation requirements of the protected structure in actual engineering.