An efficient retrofitting technique is expected to improve the seismic performance of a lateral force-resisting system without increasing the seismic demand on the structure, which can unfavorably lead to irreparable damages during a seismic event. On this basis, the present study aims to introduce an optimal strategy for seismic retrofitting of steel plate shear wall (SPSW) systems using low yield point (LYP) steel material and to demonstrate its effectiveness through systematic investigations. To this end, detailed nonlinear static, cyclic, and dynamic analyses, as well as fragility analyses, have been performed on single- and multi-story, code-designed as well as retrofitted SPSWs. The aim is to identify the most efficient retrofitting approach and to demonstrate its effectiveness in enhancing the seismic performance and lowering the seismic vulnerability of the system. It is shown that replacing the original, conventional steel infill plate in an SPSW system with an LYP steel plate having twice the original thickness can improve not only the buckling capacity and serviceability, but also the structural performance and seismic response of the system, without increasing the demand on the structure and creating overstrength concerns. Fragility analysis also shows that the vulnerability, as well as probability, of damage to system can be considerably lowered as a result of the implementation of such a retrofitting strategy.