The excess pore pressure generated by pile installation gradually dissipates following installation, which mainly dominates the increase of pile capacity with time. The dissipation of the excess pore pressure following pile installation has been widely investigated by experimental and theoretical studies. However, in most research, the consolidation coefficients were assumed to be constant for simplification, which may lead to errors. In the present study, the dissipation of the excess pore pressure is analyzed by radial consolidation theory with a variable consolidation coefficient based on the linear responses of e ร ln(p 0 ) and e ร log(k). The governing equation of the radial consolidation considering variable compressibility and permeability are solved by the variable separation method. Bessel functions are used to solve the differential functions for the time independent part. The excess pore pressure immediately after pile installation is obtained from cavity expansion theory and is used as the initial condition of the consolidation process. Moreover, the influences of variable compressibility and permeability on the variation of consolidation coefficient and excess pore pressure dissipation are analyzed.