Accurate prediction of plantar shear stress and internal stress in the soft tissue layers of the foot using finite element models would provide valuable insight into the mechanical etiology of neuropathic foot ulcers. Accurate prediction of the internal stress distribution using finite element models requires that realistic descriptions of the material properties of the soft tissues are incorporated into the model. Our investigation focused on the creation of a novel three-dimensional (3D) finite element model of the forefoot with multiple soft tissue layers (skin, fat pad, and muscle) and the development of an inverse finite element procedure that would allow for the optimization of the nonlinear elastic coefficients used to define the material properties of the skin muscle and fat pad tissue layers of the forefoot based on a Ogden hyperelastic constitutive model. Optimization was achieved by comparing deformations predicted by finite element models to those measured during an experiment in which magnetic resonance imaging (MRI) images were acquired while the plantar surface forefoot was compressed. The optimization procedure was performed for both a model incorporating all three soft tissue layers and one in which all soft tissue layers were modeled as a single layer. The results indicated that the inclusion of multiple tissue layers affected the deformation and stresses predicted by the model. Sensitivity analysis performed on the optimized coefficients indicated that small changes in the coefficient values (±10%) can have rather large impacts on the predicted nominal strain (differences up to 14%) in a given tissue layer.