To investigate the feasibility and seismic performance of the horizontal joints in an innovative precast shear wall system, two test walls were fabricated, and the monotonic and cyclic loading tests were performed on the two test walls, respectively. Then, the lateral load-top displacement curves, load beating capacity, ductility, lateral stiffness, strains of steel bars, strain distribution on the connecting steel frame (CSF), and relative slippages between the CSF and embedded limbic steel frame (ELSF) were discussed in detail. The test results show that the load bearing capacity and ductility of the test wall are both favorable with a displacement ductility factor of more than 3.7. The normal and shear stresses in the CSF except for the compression end are far smaller than the yield stresses throughout the test procedure. Certain slippages of about 1.13 mm occurs between the CSF and ELSF on the compression side of the test wall, while almost no slippages occurs on the tension side. The seismic performance of the test wall is favorable and the new-type scheme of the horizontal joints is both feasible and reliable.