In this study, analysis of retaining wall and backfill soil effect using a finite element based software; PLAXIS 2D version 8.5 for the inclined cohesion less backfill effect was conducted. The soil sample taken from site is uniformly distributed through depth. Material parameters used for modeling the wall were taken from literatures and on site geometry condition. Mohr-Coulomb failure criterion and linear elastic masonry retaining wall model was adopted. The earth pressure distribution generated behind a retaining wall was estimated by the finite element method and compared with that obtained from limit equilibrium method. Pseudo-static analysis is used to evaluate seismic earth pressure and its probable resultant force location which is used for determination of mode of failure. Seismic soil pressures on retaining wall with slopy ground have been computed using a 0.1PGA recorded in the study area. Deformation due to self-weight of wall and surcharge load is maximum at the top of wall and minimum at bottom .The results obtained from the finite element analysis indicate that the resultant force and stress distribution is lower as compared to limit equilibrium method. Manual computation of safety factor against sliding and overturning checked and didn’t fulfill minimum factor of safety of 1.5.That is the main factor for the failure of previous retaining wall. Based on limit equilibrium method with constant horizontal PGA value due to bulk density and surcharge load, active earth pressure reaches 18.3% as compared to dry density and self-weight only. For the same case in the static analysis, lateral pressure reaches 18.9% as compared to dry density and self-weight of wall only. Thus surface loads and density of backfill have more effect in terms of resultant force, stress and deformation for the whole analysis and stability of soil-wall model in both cases.