The distinct particle breakage characteristics of calcareous sand can induce extra settlement in calcareous sand foundations, posing a significant challenge to the safety of island and reef engineering. To explore the particle breakage, settlement characteristics and internal stress variations of calcareous sand foundations, the laboratory loading tests for calcareous sand foundations with different particle gradations were conducted. Particle Image Velocimetry (PIV) technology and tactile pressure sensor systems were also utilized. The study reveals that the tested calcareous sand foundations have differential settlements subjected to external loading, which has a strong relationship with the particle breakage. It is found that the nonuniform internal stresses between the sand particles can induce different degrees of the particle breakage, which in turn changes internal stresses and redistribution of particle positions in calcareous sands, and further causes the uneven settlement of the foundation. The degree of uneven settlement in calcareous sand foundations increases with an increase of external load and decreases with an increase of the coefficient of uniformity Cu for calcareous sands. During creep, the vertical and lateral stresses on the inter-particle contacts within the calcareous sand foundation exhibit an overall trend of decrease in weak forces and increase in strong forces. This continuous increase in strong forces results in a growth of creep deformation in calcareous sand foundation, while the degree of differential settlement in the foundation decreases with the progression of creep.