Jet grouting is often used in deep excavation projects to improve the strength of soft ground. It not only increases the stability of excavation, but also limits the lateral displacement of retaining walls. However, it is often found that jet grouting may induce lateral outward displacement of diaphragm walls. The amount of displacement may exceed 10cm, leading to crack of diaphragm wall in extreme cases. Contrary to general belief, the outward movement of diaphragm wall is not induced by the seemingly high grouting pressure infact, difficulties in expelling waste disposal from the grout hole that leads to expansion of the soil mass is perhaps the governing mechanism. This paper presents to case of history a deep excavation. Both the construction characteristics of jet grouting as well as displacement patterns of diaphragm wall are addressed. The mechanism that leads to the outward movements of diaphragm wall is also delineated via a theoretical approach.