This investigation covers the lateral performance of a new concept of hybrid timber shear wall, and includes individual connection testing, full-scale shear wall testing and numerical modeling. The main objective of this study is to develop enhanced timber structural solutions that facilitates the design and construction of mid-rise timber buildings in areas with high seismic demand. The new shear wall concept involves structural configurations similar to those found in conventional light-framed timber shear wall, but using glulam members as framing elements, connected to OSB sheathing panels using conventional nails. More specifically, the OSB sheathing is embedded within grooved glulam members in order to enhance the lateral capacity and stiffness of the wall. Connections and full-scale monotonic and cyclic shear wall testing were performed, and the results indicated that it is possible to obtain a high performing timber shear wall with the proposed concept. In particular, the obtained values are promising with strength and stiffness levels that are 3 times that of a conventional CLT shear wall. Furthermore, the proposed prototype comprises 0,89 m3 of wood volume, which represents less than one-fourth of the amount of wood in a CLT shear wall of equivalent lateral capacity. In addition, the ductility obtained for the proposed concept can be classified as high ductility class (HDC) according to the Eurocode 8. It is expected that the ductility may be further improved by limiting potential brittle failure observed in of one of the framing members at high displacement levels. Finally, it was found that available modelling tools with hysteretic models, such as the MSTEW, is capable of predicting the lateral strength and stiffness of the proposed concept, since modeling errors below 10% were obtained.