This research investigates the effect of uncertain material parameters on the stochastic, dynamic response of a rock-fill dam-foundation system subjected to non-stationary random excitation. The uncertain material parameter of particular interest is the shear modulus, developed from a lognormal distribution model. The stochastic seismic response model of the dam-foundation system, with uncertain material parameters and subjected to random loads is the result of a Monte Carlo simulation method. The nonlinear behavior model arises from an equivalent linear method, which considers the nonlinear variation of soil shear modulus and soil damping as a function of shear strain. Specification of the non-stationary stochastic process arises from a simulation method, which generates artificial earthquake accelerograms obtained from the product of a deterministic function of time and a stationary process. The artificial earthquake ground acceleration records reflect the characteristics of soft, medium and firm soil types. Comparison of the numerical results from these approaches provides stochasticity in earthquake seismic excitation and randomness in material parameter (shear modulus) cases. Further, the results indicate that both these cases generally influence the nonlinear dynamic response of rock-fill dams to a non-stationary seismic excitation.