Nonlinear seismic analysis of embankment dams is crucial, especially in regions with high seismicity. The lack of rigorous seismic evaluations of these massive structures can lead to catastrophic failures. The earthquake-induced failure of embankment dams is often evaluated by the magnitude of seismic deformations resulting at the crest and other critical locations. Horizontal seismic and vertical gravitational forces are the primary loads considered in general for evaluating the seismic response of embankments during an earthquake event, ignoring the hydrodynamic forces acting on the upstream face. But in cases where the permeability of the upstream portion of the dam is low, accumulation of hydrodynamic forces on the upstream face of the embankment dam may play a significant role in the dynamic response. Besides, it also leads to the generation of excess pore pressure inside the dam body. Consequently, the role of hydrodynamic forces is critical in understanding the seismic response of embankment dams. The study attempts to study the role of hydrodynamic forces on the dynamic response and stability of the embankment dam founded on different foundations. Seismic soil-structure interactions of an embankment dam would also be included using a finite element two-dimensional plain strain model. The effect of interaction between the dam body and the bedrock is contemplated by using soft, medium, and hard bedrock foundation strata. Additionally, the influence of dam geometry on the seismic response of the dam and its Soil Structure Interaction (SSI) is also examined. Results reveal that ignoring the hydrodynamic effects significantly underestimates the stresses induced in the dam body at different foundation types. Therefore, a comprehensive study of the hydrodynamic effects on the dam body is fundamental in defining the behaviour of embankment dams under seismic activity.