The aim of this paper is to investigate the effect of underground circular tunnels on cyclic behavior and liquefaction potential of soils surrounding them. For this purpose, an intensive numerical analyses scheme which includes three-dimensional, finite difference based total stress analyses on generic soil, tunnel and earthquake combinations has been performed. The effect of tunnel diameters, depth of tunnel center, support thickness of tunnels and the strength of soils have been discussed in detail. It is concluded that changing the diameter and support thickness of the tunnels does not make a remarkable change on surface acceleration. Similarly, the liquefaction potential of the soils considered does not depend on the diameter and support thickness. However, it was shown that the most important parameter defining the liquefaction potential is the depth of the tunnel from the ground surface. If the tunnels are deeper, they are less vulnerable to liquefaction compared to shallow tunnels. (C) 2013 Elsevier Ltd. All rights reserved.