Summary: We develop an iterative method to analyze plates on a two-parameter elastic foundation, where material properties of the soil are used to compute the coefficients of subgrade reactions for the layered soil medium. In the analysis, both plate and surrounding soil area are divided into finite elements. The plate finite element is considered by including the effects of subgrade reactions. By means of the method suggested, it is possible to examine the interaction between separate plates of arbitrary shape close to each other.