A composite structural system consisting of prefabricated reinforced concrete frame with infill slit shear walls (PRCFW), with good ductility, is a new type of earthquake resistant structure. Pseudo-static tests were performed to evaluate the seismic behavior of the PRCFW system. Two one-bay, two-story PRCFW specimens were both built at one- half scale. Additional computational research is also conducted to enhance the nonlinear analytical capabilities for this system. Combined with the concrete damaged plastic (CDP) model provided by finite element program ABAQUS and the constitutive model of concrete proposed by Chinese code, the damage process of the PRCFW structure under cyclic load is simulated. The simulated results show a good agreement with the test data, the dynamic behavior of the PRCFW system can be simulated sufficiently accurate and efficient to provide useful design information. The experimental and numerical study show that this system has the potential to offer good ductility and energy absorption capacity to dissipate input energy, and stiffness adequate for controlling drift for buildings located in earthquake-prone regions.