Building with prefabricated light-frame modules is an innovative construction method whose market share is increasing in Sweden. It is often used to build low and mid-rise residential buildings where the modules are premanufactured in factories with high efficiency and accuracy. This building method has many advantages, though more research regarding wind stabilization of both individual and assembled modules is still needed. To study the racking stiffness and strength of such timber modules, a numerical model of their shear walls was created and verified based on experimental results from specially prefabricated test modules. A new test facility was built for this work, where several potentiometers and a digital image correlation system collected the data used to verify the simulation model. The results from the simulations agree well with the experimental findings, which indicate that the three-dimensional finite element model works with reasonable accuracy for this application. © WCTE 2021. All rights reserved.