In this contribution, a numerical model for connections in engineered timber structures, using specially designed connection elements, is presented. The model considers the non-linear load-displacement relation typical for many types of connections on different levels and is presented on the example of dowel-type connections. The structural levels investigated herein are a) the embedment behaviour of a dowel into wood; b) the behaviour of a singledowel connection; and c) a multi-dowel connection under a general load case typical for structural applications. A special characteristic considered in the formulation of the connector elements is the unloading behaviour, which is characterized by an initial high unloading stiffness but a very low stiffness when the load is fully removed. The latter is due to remaining permanent deformations in the wood as well as in the metal connector. The modelling approach was found to correlate well with experimental data and gave new insight in the behaviour of dowel connections, particularly as regards the unloading and reloading behaviour with alternating load directions on the single-dowel connection scale.