Based on an existing assembly shear wall with bolt-steel-bolt horizontal connector (PSW-1), an innovative prefabricated shear wall with bolt-steel horizontal connector (PSW-2) is designed. The theoretical analysis models of three specimens, including PSW-1, PSW-2 and a cast-in-place shear wall(SW-1), are established by finite analysis software ABAQUS. PSW-1 is analyzed under monotonic load, and the feasibility and accuracy of simulation method used in this paper is confirmed based on the comparison of load-displacement curves between the simulation and the test result. The seismic behavior of three specimens under cyclic load is studied and compared based on the finite element simulation result. The result of the research shows that the seismic behavior of PSW-2 is generally better than that of PSW-1. The bearing capacity and stiffness of PSW-2 and SW-1 are basically in good agreement. The deformability of PSW-2 is slightly better than that of SW-1, while the energy-dissipating capacity of PSW-2 is lower than that of SW-1. The failure mode of PSW-1, PSW-2 and SW-1 are different.