The goal of this study is to develop a racking model of plasterboard-sheathed timber walls as part of the efforts towards performance-based seismic engineering of low-rise light timber-framed (LTF) residential buildings in New Zealand. Residential buildings in New Zealand are primarily stand-alone low-rise LTF buildings, and their bracing elements are commonly plasterboard-sheathed LTF walls. It is an essential part of performance-based seismic designs of LTF buildings to be able to simulate the racking performance of plasterboard walls. In this study, racking test results of 12 plasterboard walls were collected and studied to gain insight into the seismic performance of plasterboard-sheathed LTF walls. The racking performance of these walls was examined in terms of stiffness/strength degradation, displacement capacity, superposition applicability and failure mechanisms. Subsequently, a mathematical analysis model for simulating racking performance of LTF plasterboard walls is developed and presented. The developed racking model is a closed-form wall model and could be easily used for conducting three-dimensional non-linear push-over studies of seismic performance of LTF buildings.