In this work, a new structure system named the self-centering steel timber hybrid shear wall is developed, and it is composed of a self-centering steel frame, an infill light-frame wood shear wall, and slip-friction dampers. Cyclic loading tests on the shear wall system were conducted, and based on the tests, the lateral resistance, failure modes, the distribution and redistribution of shear force of the the self-centering system and the loss of the post-tensioning force were investigated. Based on the OpenSees platform, a numerical model for the new system was developed and then validated against the experimental results. The model was then used to conduct a parameter analysis. In the analysis, the activation force and the initial post-tensioning force were taken as the key parameters. Experimental results showed that the self-centering steel timber hybrid shear wall possessed sufficient self-centering ability and satisfactory energy dissipation. The hysteretic curve of the shear wall was “flag shape”. Due to the lock-up of dampers under the large displacement, the second increase of strength and stiffness for shear wallmay be realized in the test. According to the parametric analysis results, the increase of the activation force may reduce the self-centering capacity of the system. Under the same activation force level, the increase of the initial post-tensioning force may not provide the continuous increase of the self-centering capacity of the system. Furthermore, a formula, which gives the guidance on the selection of dampers’ activation force and the initial post-tensioning force, was proposed for the convenience of design.