To improve the shear performance and construction efficiency of horizontal joints in prefabricated concrete wall panel structures, an innovative keyway joint for prefabricated concrete wall panels is presented to maximize the contact area and joint friction, enhancing both the shear performance and the installation efficiency. Shear tests on eight prefabricated concrete wall panels were conducted to investigate the effects of the axial compression ratio, interface mortar strength, and keyway depth on the shear performance of these novel joints. Concurrently, a finite element model for prefabricated concrete wall panel keyway connections was established via ABAQUS, and a parametric analysis approach was employed to study various factors such as the axial compression ratio, the interface mortar strength, and the keyway construction type, as well as their impact on the shear performance of joints. The findings showed that, as the axial compression ratio increased, the failure mode of the keyway joint transitioned from shear brittle failure to compressive shear plastic failure, accompanied by evident crack propagation. The recommended keyway depth parameter remains between 40 and 80 mm, with the inclination angle of the keyway joint ideally ranging from 0° to 20°. Compared to the straight joint, the shear capacity of the innovative keyway joint increased by 16.5%.