During earthquake there is a considerable damage to structures which are above the ground level as well as to those structures which are completely underground. Several studies were carried out for analysing dynamic behavior of these structures. The underground structures themselves do not have their own natural period and mode of vibration hence the deformation of underground structures is governed by relative displacements of the surrounding ground during earthquakes. The effects of soil-structure interaction, stratification of soil, material non homogeneity, ground water table fluctuation, and inherent properties of soil strata needs due consideration in dynamic behavior of underground structures. This paper aims to review the effects of different parameters on dynamic behavior of underground structures and conclusions are drawn based on the review which may help in formulating new ideas for further research work.