Midply shear wall, which was originally developed by researchers at Forintek Canada Corp. (predecessor of FPInnovations) and the University of British Columbia, is a high-capacity shear wall system that is suitable for high wind and seismic loadings. Its superior seismic performance was demonstrated in a full-scale earthquake simulation test of a 6-storey wood-frame building in Japan. In collaboration with APA–The Engineered Wood Association and the American Wood Council (AWC), a new framing arrangement was designed in this study to increase the vertical load resistance of midply shear walls and make it easier to accommodate electrical and plumbing services. In this study, a total of 12 midply shear wall specimens in four wall configurations with different sheathing thicknesses and nail spacing were tested under reversed cyclic loading. Test results showed that the modified midply shear walls have approximately twice the lateral load capacity of a comparable standard shear wall. The drift capacity and energy dissipation capability are also greater than comparable standard shear wall. Seismic equivalency to standard shear walls in accordance with ASTM D7989 was also conducted. Results show that an overstrength factor of 2.5 and can be used to assign allowable design strengths of midply shear walls with 7/16” and nail spacing at 4” or 3” on center. For midply shear walls with 19/32” OSB, a higher overstrength factor must be used to meet the ductility criteria. The information from this study will support code implementation of the midply shear walls in Canadian and US timber design standards, thereby providing more design options for light wood frame structures in North America.