This paper analyzes the bearing capacity of two-layered soil medium using finite element (FE) software ABAQUS/CAE 2023. Although geotechnical engineers design foundations for layered soil, majorly current geotechnical studies emphasize single homogenous soil. So, this research has significant novelty as it focuses on layered soil and adds to the current literature. A nonlinear FE model was prepared and analyzed to determine the ultimate bearing capacity of two-layered soil (sandy soil over clayey soil). The Drucker–Prager and Mohr–Coulomb models were used to represent sandy soil and clayey soil layers, respectively. Strip footing material properties were considered isotropic and linearly elastic. This study performed parametric studies to understand the effects of thickness, unit weight, and the modulus of the elasticity of sandy soil on the ultimate soil bearing capacity. Additionally, it also analyzed the effect of the cohesive strength of clayey soil on layered soil bearing capacity. Results showed that an increase in sandy soil layer thickness strengthens the layered soil, and thus, improves the bearing capacity of soil. Increasing the sandy soil layer thickness over footing width (h1/B) ratio from 0.15 to 2.0 improved the ultimate bearing capacities with elastic settlements of 350 mm and 250 mm by 145.62% and 101.66%, respectively. Additionally, for a thicker sandy soil layer, an increase in the unit weight and modulus of the elasticity of sandy soil led to higher ultimate bearing capacity. Furthermore, it was concluded that an increase in clayey soil’s cohesive strength from 20 kPa to 30 kPa resulted in a 24.31% and 3.47% increase in soil bearing capacity for h1/B = 0.15 and h1/B = 2.0, respectively. So, the effect of cohesion is prevalent in the case of a thicker clayey soil layer.