Recently there has been an increased interest in the study of the nonlinearity in soil response for large strains through in situ earthquake observations. In this paper, the downhole array acceleration data recorded at a reclaimed island, Kobe, during the 1995 Kobe earthquake are used to study nonlinear site effects. Particular attention is given to the liquefaction-induced nonlinear effects on the recorded ground motions. By using the spectral ratio and the spectral-smoothing technique, the characteristics of the ground motions are analyzed. It is shown that the peak frequencies in spectral ratios were shifted to lower frequencies when the strongest motions occurred. The increase in the predominant period was caused primarily by a strong attenuation of low-period waves, rather than by amplification of long-period motions. Based on the spectral analyses, the nonlinearity occurring in the shallow liquefied layer during the shaking event is identified, manifested by a significant reduction of the shear modulus. A fully coupled, inelastic, finite element analysis of the response of the array site is carried out. The stress-strain histories of soils and excess pore-water pressures at different depths are calculated. It is suggested that the stress-strain response and the build up of pore pressure are well correlated to the variation of the characteristics of ground motions during the shaking history.Key words: site response, ground motion, nonlinearity, soil liquefaction, array records, Kobe earthquake.