This paper presents the results of axial load tests performed on instrumented model piles pre-installed in a large-scale, half-circular chamber with a viewing window in its flat-side wall. Uniform silica sand samples were prepared with different densities using dry pluviation. The effects of pile surface roughness and soil density on the response of the soil during loading of the model piles were studied by analysing sequences of digital images using the digital image correlation technique. Test results show that the extent of the zone next to the pile that is affected by loading of the pile increases as the pile surface roughness and soil density increase. The development of a shear band next to the pile shaft was also studied by carefully analysing images taken with a digital microscope during loading of the model piles. The average thickness of the shear band is in the 3·2D50–4·2D50range for rough model piles, whereas no shear band was observed for smooth model piles. Understanding of shear band formation along the pile–soil interface provides insights into the calculation of the shaft resistance of the pile as a function of initial soil density and stress as well as pile surface roughness.