Abstract: Layered asphalt pavement structures are usually analyzed applying small deformation theory. In this study, finite deformation theory was employed to achieve more accurate results. The response of pavement structure under vertical and horizontal loads was investigated by three-dimensional finite element method. The calculating results, especially for deflection, on the basis of finite deformation theory are very different from that according to the small deformation theory. And the difference will increase while the stiffness of pavement structure decrease. With only vertical loads, asphalt layer is mainly under compressive stress in three directions. With horizontal loads and vertical loads, shear stress contributes to accumulated plastic deformation in the asphalt layer. Sliding between layers could occur due to the shear stress. Tensile strain can cause fatigue cracking in asphalt layer under low temperature. Due to a small modulus of resilience, there exists a large compressive strain and visible deflection in soil base.