In this study lateral behavior of light weight steel frame with diagonal braces under monotonic and cyclic loads was investigated. A numerous number of cold formed sheer panels with different properties were modeled and analyzed by finite elements method. Modeling was done with the aid of ABAQUS and implicit method. At first the effect of different thicknesses and different yielding surfaces of panel members on lateral behavior was studied.The results of strength, ductility and energy absorption for different panels are compared. Based on the results, although using strong braces; compared with other members of panel; narrowly increases strength of panel, it lessened ductility and energy absorption of system considerably. On the contrary, using strong sections for outer members of panel as well as decreasing thickness and yield stress of braces, improved panel ductility in some models to values higher than 10 and the panel over strength to value 1.26. This shows desirable performance of panels. In some other models, effects of two kinds of stiffeners, openings in shear panel, using braces in two sides of panels and finally effect of vertical load on lateral behavior of shear panel were investigated. Generally, using stiffeners postponed local buckling, torsion and distortion of outer members of panel and increased energy absorption of panel effectively Using braces in two faces of panel, removes load eccentricity and its resultant torsion, which minimizes damage of panel and increases energy absorption.