In this paper, ground movement in a highly populated region of Iran’s capital city, Tehran, induced by excavation and construction of 7 the line of Tehran subway has been investigated. It was aimed to analyse the ground displacements and surface settlement which has been induced by tunnelling using Earth Pressure Balance-Shield Tunnel Boring Machine. The analysis was performed by Finite difference Method (FDM) using FLAC 3D FDM package. Results from performed numerical analysis show good agreement with obtained results from analytical and empirical methods. In addition, effect of some important factors such as tunnel geometry and ground properties on ground surface settlement has been investigated. Obtained results indicate that ground surface settlement is more sensitive to tunnel geometry rather than height of tunnel placement.