This paper presents the development of a numerical model aimed at the simulation of nonlinear behaviour of traditional joints between walls made of autoclaved aerated concrete (AAC) masonry units. Nonlinear behaviour and cracking of AAC and mortar were simulated using the concrete damaged plasticity (CDP) model available in the ABAQUS finite element software. The paper also presents and discusses the results of an experimental campaign involving testing six T-shaped, monosymmetric samples with traditional joints between walls loaded in shear. The results were used to validate the numerical model. The validation confirmed that the model is capable of producing accurate results and predicting the structural behaviour with a reasonably good accuracy in elastic and post-elastic stages. Furthermore, a sensitivity study was conducted, in which the variation of elastic modulus, Poisson’s ratio, tensile strength, compression strength and fracture energy of AAC was investigated. Results showed that the variation of elastic modulus, tensile strength and fracture energy is most critical to the structural behaviour of the model, while variation of the remaining parameters has a negligible effect on the results.