Over the past few decades, the rapid development of efficient mathematical algorithms and the increasing availability of powerful computers have made it possible to develop realistic constitutive models. With the development of highly sophisticated constitutive models, the Finite Element Method (FEM) has become an invaluable tool for predicting ultimate loads and the associated failure mechanisms. Consequently, more capable and realistic models can be developed to analyze and design various types of structures. This paper concentrates on the application of FEM model for better understanding of the behaviour of cable bolts under axial loading conditions. A detailed geometry of the pullout practice has been generated based on the previous laboratory pullout experiments. The interaction between the cable bolt and encapsulation material has been observed and compared with the experiments. Once the models were verified, the failure mechanism of the encapsulation material has been analysed. Results indicated that numerical models can assist to expand the knowledge on the different pullout scenarios while saving time and energy and producing less environmental waste from laboratory tests; however, primary verification of the models are essential.