The paper presents results from a new series of tests on displacement piles in sand, involving different installation modes, and combines these with results from previous tests at the same site as well as with test data at two other well-investigated sand sites to provide fresh insights into factors affecting “short-term” capacity and set-up of shaft friction. It is shown that the shaft capacity measured shortly after installation reduces systematically with the logarithm of the number of impact blows or jacking increments per unit shaft area imparted during installation. However, the degree of set-up of shaft friction for piles increases with an increase in the number of blows, and piles installed using a large number of blows can attain highest “long-term” shaft capacities, despite having the lowest short-term capacity. The tests indicated that the driving impact frequency had a relatively small influence on shaft friction, while piles installed by vibration attain short-term capacities comparable to driven impact piles, but showed negative set-up.