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A computer simulation of cone penetration in layered soil was carried out using axisymmetric finite element (FE) to investigate soil deformation and soil hardpan prediction during cone penetration. The FE analysis was performed in ABAQUS, commercially available FE package. Soil was considered as a nonlinear elastic plastic material modeled using Drucker Prager material model with hardening option. The soil cone interaction was modeled as contact problem with frictional property. The FE analysis simulated cone penetration in soil with three bulk density treatments and three soil-cone surfaces (Metal, Tmetal and Teflon). The FE model predicted soil hardpan depths were smaller than the depths predicted using cone penetrometer method. Soil moisture, bulk density and cone material significantly affected the cone penetrometer data in predicting soil hardpan depths; however the FE results were not affected by the factors. Inclusion of the influence of preconsolidation stress into the yield stress vs. plastic strain relationship of the material hardening part of the model (NSDL-AU soil compaction model) improved the performance of FE in predicting the peak penetration resistance.