PHC-Steel Composite Pile is a new kind of piles combined by PHC pile in the upper part and Steel pile in the lower part. PHC-Steel composite pile has the advantages of corrosion resistance and good penetration properties over the traditional piles. However, one of the problem of PHC-Steel composite pile is the determination and computation of the vertical bearing capacity, which is very important for the safety of construction based on the piles. The traditional method can not be applied directly to calculate the vertical bearing capacity and the load transfer mechanisms were not investigated. Therefore, the design of composite pile is lack of mechanism basis. This paper performed simulation research on the PHC-Steel composite pile withe the software FLAC3D, based on geological conditions of the Yangtze River region of Zhenjiang Yangzhong. The vertical distribution of displacement field, the ultimate bearing capacity of pile, the micro strain were simulated by using the FLAC3D finite difference software. The contact between pile and soil were simulated by establishing contact surfaces. The ultimate bearing capacity of PHC- pipe piles was discussed, which provides the basis for design and analysis of PHC- steel pipe composite pile project.