Since cold-formed steel (CFS) elements are susceptible to complex buckling phenomena that decrease their structural capability, many strengthening trends have been developed so far. One of these methods is the use of polystyrene aggregate concrete (PAC) as bracings in order to restrain the global and distortional buckling modes of CFS members, where a new structural system comprising CFS elements encased in PAC has been proposed. In this research, PAC-encased CFS shear panels have been investigated numerically, where a simplified finite element model was developed to predict the structural behavior and capacity of such members. This goal was achieved using ANSYS software, where a geometrically and materially nonlinear analysis with imperfections (GMNI) was used to solve the problem of PAC-encased CFS shear panels. The full detailed volume-contact element-based concrete model was replaced by spring elements perpendicular to the plate’s plane with equivalent properties, and beam elements that could represent the concrete block more accurately regarding the global lateral stiffness and shear resistance. Consequently, for this case, the combination of local and global stiffness of PAC could produce the actual shear behavior of PAC-filled wall panels. The developed model was validated against previous experimental tests from the literature. Parametric studies were conducted in terms of the imperfection amplitudes, the stiffness of springs and the properties of PAC. Finally, the structural performance of PAC-encased panels under combined axial and shear loading was examined, where the effect of different axial load levels on the lateral strength was determined, and an interaction equation was proposed.