The mechanism and lateral bearing capacity of reinforcement concrete (RC) frame with dry stack in filled panel (DSIP) were investigated using quasi static experiments and finite element models. According to the parallel model and equivalent strut model, the lateral bearing capacity of RC frame and DSIP were researched separately. Results show that: 1) The plain stress element and interface element are applicable in finite element (FE) model analysis. According to the FE model, the failure of RC frame with DSIP is caused by the damage of frame; 2) Lateral bearing capacity of DSIP is mainly from the friction between bricks in the panel, which can be divided into 3 stages: constant stage, increasing stage and ultimate stage; 3) Equations for lateral bearing capacity of DSIP were proposed and verified by FE model results.