Steel Plate Shear Walls (SPSWs) Have Become More and More Popular in Recent Years Because of their Potential Huge Energy Dissipation Capacity and Ductility under Lateral Loads. Due to their Low Cost and Fast Construction, SPSWs Have Potential Application in Practice. the Finite Element Software ANSYS Applied to the Analysis of the Hysteretic Behavior of SPSWs is Described in This Paper First. It Was Found that Compressive Stress Existed in SPSWs and the Effects Became More Evident with Decreasing Height-To-Thickness Ratio. This Was Validated by Comparing Theoretical and Experimental Test Results. Secondly, based on the Analytical Results, a Modified Strip Model is Proposed. in the Modified Model, the Compressive Effects in the Panel Were Taken into Account and It Was Then Found that the Load-Carrying Capacity and the Energy Dissipation Capacity Agreed Well with the Already Carefully Validated Experimental Results.