Several laboratory model tests were carried out on the bearing capacity of strip footings on reinforced soil foundation and reinforced slope. Compared with unreinforced cases, the deformation and failure of reinforced earth in different foundation conditions were monitored and analyzed. In order to visualize a failure mechanism when the ground reaches the state of limit equilibrium, a new numerical procedure was proposed. Assuming an elastic-perfectly plastic model, a smeared shear band approach and a modified initial stress method enable the proposed procedure to create an explicit collapse mode by the stress yield condition. On the basis of the development of failure mode and deformation of foundation, the bearing capacity of strip footings can be significantly increased by the inclusion of geotextile. And because the procedure considers the stiffness and deformation of the material, it may be applied to complex stability problems.