A gabion wall of 30 m long and 9 m high for a residential plot at Bahria town Rawalpindi, Pakistan, started bulging right after one month of its construction. In this study, two approaches i.e., analytical and Finite Element Method (FEM) using Plaxis 2D software were carried out to assess the structural stability of the Gabion Retaining Wall. The results of the analytical and numerical analysis show that the Gabion Retaining Wall is marginally safe with the factor of safety (FOS) 1.19 and 1.07 respectively, while displacement at the top was found out to be 0.4 m with the maximum stresses at the toe. Finally, the stepped-faced Gabion Wall along with 200 mm concrete at the toe was found out to be a viable solution for the stabilization of the Gabion Retaining Wall. Consequently, FOS increased to 1.27 with the decrease of displacement at the top from 0.4 m to 0.1 m while stresses at the toe were decreased by 50%.