The mechanism of the transmission of stresses from a distributed surface load through geosynthetic-reinforced soil systems is still not fully understood. In particular, the roles played by fill compaction, confining action of the reinforcement, and the boundary interference of the wall facing are not well represented in the current design methods. This paper reviews current knowledge based on test results available from scale models and current approach used in analysis of load propagation in reinforced soil structures. A new analytical model based on the stochastic theory of stress diffusion is described. The model accounts for the effect of fill compaction and confinement as well as the boundary interference with the stress diffusion mechanism.