In order to investigate the behavior of geogrid-reinforced soil retaining wall with concrete-block panel under local loads and the related interaction mechanism, laboratory model tests are conducted to determine the distribution of the panel lateral displacement, the vertical settlement of the top of wall, the vertical and horizontal soil pressure, the diffusion angle of additional stress, the coefficient of lateral soil pressure and the tension strain of geogrids. The results show that the cumulative lateral displacement of the panel increases gradually from the bottom to the top. The distribution of vertical and horizontal soil pressures along the geogrid length shows a decreasing trend from the middle portion to both ends. The measured diffusion angle of additional stress, which ranges from 40° to 75°, is greater than that of soil mass without geogrids. The distribution of the lateral soil pressure coefficient is different in different sections. The distribution of geogrid strain along its length can be represented by a curve of single-peak, where the horizontal distance between the position of peak and the wall foot decreases gradually from the top to the bottom.