The majority of high-rise buildings are designed with one or several underground stories in the urban area. However, many researchers don’t incorporate it in the dynamic analysis assuming that the building is fixed at the ground level. This study aims to investigate the effect of the underground stories on the dynamic response of RC building. This is achieved by comparing the behavior of buildings without underground story with those with multi-level underground stories. In this scope, two dimensional finite element models are generated, where three buildings of 12, 16 and 24 stories resting on loose soil are modeled. The analysis is performed under the effect of a strong earthquake input motion by the use of PLAXIS software. The non-linear small strain hardening constitutive model is employed for an accurate simulation of the soil behavior. Based on the results, the embedded underground stories show a significant alteration of the structural dynamic response. This paper provides recommendations on the importance of including the underground stories during analysis.