This study evaluates the earthquake-induced movement of mechanically stabilized earth (MSE) walls. A thorough investigation was conducted on an MSE wall model, utilizing a comprehensive finite element (FE) analysis. This research focuses on investigating and designing MSE walls made of reinforcement concrete and hollow precast concrete panels. It also involves comparative studies such as on the vertical pressure of the wall, horizontal pressure of the wall, lateral pressure of the wall, settlement of the wall, settlement of the backfill reinforcement, vertical pressure of the backfill, horizontal pressure of the backfill, lateral pressure of the backfill, vertical settlement of the foundation, and settlements of soil layers across the height of the MSE walls. The FE simulations used a three-dimensional (3D) nonlinear dynamic FE model of full-scale MSE walls. The seismic performance of MSE walls has also been examined in terms of wall height. It was found that the seismic motion significantly impacts the height of the walls. In addition, the validity of the proposed study model was assessed by comparing it to the reinforcement concrete wall and ASSHTO guidelines using finite element (FE) simulation results. Based on the findings, the hollow prefabricated MSE wall was the most practical alternative due to its lower displacement and settlement. The specifics of the modeling approach used in this study and the lessons learned serve as benchmarks for future comparable lines of inquiry and practitioners, especially as the computational power of desktop computers continues to rise.