In the analysis of the settlement of the soil outside the pit and adjacent pipelines induced by foundation pit construction, less consideration is given to the conditions of the bottom-falling water-stop curtain in the confined aquifer stratum. Therefore, this paper conducts relevant research. Through the two-stage method, the depth drop of the water level outside the pit caused by the drop of confined water outside the pit in the strata containing confined aquifers was analyzed first, and the transfer mechanism of the unloading at the bottom and side walls of the pit after the pit excavation considering the residual stress of the soil was analyzed. Combined with the Mindlin displacement, the dewatering of the pit and the settlement of the strata outside the pit under the excavation conditions were obtained. Then, the pipeline deformation equation is established through the Pasternak foundation model. After discretization of the existing pipeline structure using the finite difference method, the pipeline settlement under the pipe-soil interaction is calculated. Finally, the theoretical analysis was verified based on the engineering examples of foundation pits and adjacent pipelines, and a series of parameter analyses were carried out. Research shows that this theoretical analysis method has good rationality and accuracy in the settlement of adjacent soil and pipelines induced by foundation pit construction under the condition of bottom-falling water-stop curtain. This method has a clear concept and simple calculation, and can be used as a powerful means to analyze and predict the settlement of soil and pipelines under this working condition.