Sheet-pile retaining wall is a very common retaining structure is widely used in construction of mountain road. However, in order to resist the lateral load, conventional sheet-pile retaining wall is of relatively large size, which is less economical. Under this condition, a new pile-arching retaining wall, which is suitable for mountain road construction, is proposed in this study. Considering that the arch structure is of good compression performance, the arching plate is used to replace the conventional plate structure, and the arch plate is connected with the pile foundation. The whole structure could be prefabricated or constructed in the way of cast-in-place. Based on the theories of earth pressure and lateral loaded pile, computational models were proposed for the active earth pressure of arch plate and the anti-slide pile. Then, the theoretical model was validated by comparing the predictions with the numerical results. Subsequently, parametric studies were conducted to investigate the influence of the geometric parameters of pile, geometric parameters of arch plate and the soil parameters on the limit load of the new pile-arching retaining wall structure. The results show that increase of ratio of length to width of the rectangular pile cross section, the embedded depth of pile as well as the friction angle of soil could effectively improve the limit load of pile-arching retaining wall structure.