As a potential source of damage, earthquake-induced liquefaction is a major concern for embankment safety and serviceability. Densification has been a popular method for improving the performance of liquefiable soils. Understanding embankment settlement mechanisms plays a fundamental role in determining densification remediation. In this work, nonlinear dynamic analysis of embankments on liquefiable soils is conducted by the finite-difference program FLAC3D (version 6.0) with the simple anisotropic sand constitutive model. Numerical models are validated via dynamic centrifuge test results reported in the literature. The effects of densification countermeasures on the mean and differential settlements are explored in this study. Furthermore, the effects of the densification spacing and width are investigated to optimize the geometry of the densified regions. The development of pore pressure and the movement of the surrounding loose soil are discussed. The results show that both the mean settlement and differential settlement should be simultaneously utilized to comprehensively assess the overall effectiveness of densification treatment. The mean settlement is influenced by the densification spacing and width, but the differential settlement is highly associated with the inner edge of the densified region. This study provides insight for improving the design of the location and lateral extent of densification regions to prevent excessive embankment settlement.