The pressed sleeve connection is a new type of connection technique reported in China recently. To explore the possibility of combining the advantages of pressed sleeve connections and recycled aggregate concrete (RAC) in precast concrete, the seismic performance of precast shear walls with pressed sleeves and recycled fine aggregate (RFA) concrete was investigated through a thorough experimental programme. A total of seven precast shear wall specimens and one cast‐in‐situ specimen were fabricated and tested under lateral cyclic loading, considering the effects of the aspect ratio, the axial compression ratio, and the RFA content. The failure modes, hysteretic behavior, bearing capacity, energy dissipation, stiffness and shear distortion of the specimens, as well as the strains of the steels, were reported and discussed. The test results demonstrated that the pressed sleeve connections were capable of transmitting both tensile and compressive forces between reinforcements, and the precast shear walls with pressed sleeve connections exhibited the same hysteresis behavior, strengths, ductility coefficient and energy dissipation capacity as the cast‐in‐situ counterpart. Moreover, the seismic behavior of the precast specimens with the RFA content of 30% was almost the same as those with natural aggregate concrete (NAC). The increase in the axial compression ratio and aspect ratio led to higher peak loads of the precast shear walls. Finally, existing design methods of ordinary reinforced concrete shear walls were evaluated for their application to the design of precast RFA concrete shear walls with pressed sleeves. Overall, the evaluation results revealed that the examined design methods offer generally accurate strength predictions for the proposed shear walls.