The purpose of this study is to investigate the seismic performance of both exterior precast concrete cladding panels and their connections on steel frame, when these cladding systems are considered as the structural components. The degrees of their participation of lateral stiffness to the main building are evaluated in terms of different heights of the cladding panels. Considering the cladding system as an integrated building provides additional lateral stiffness, as well as a mechanism for energy dissipation and this system can be used as one of an advanced passive seismic control system. Hysteresis behaviors of connectors are modeled and integrated into a nonlinear finite element analysis program, ABAQUS. The results show that connections play the most important role in structural cladding system and they improve seismic performance of overall building response.