This paper presents the details of studies conducted on hollow concrete block masonry (HCBM) units and wall panels. This study includes, compressive strength of unit block, ungrouted and grouted HCB prisms, flexural strength evaluation, testing of HCBM panels with and without opening. Non-linear finite element (FE) analysis of HCBM panels with and without opening has been carried out by simulating the actual test conditions. Constant vertical load is applied on the top of the wall panel and then lateral load is applied in incremental manner. The in-plane deformation is recorded under each incremental lateral load. Displacement ductility factors and response reduction factors have been evaluated based on experimental results. From the study, it is observed that fully grouted and partially reinforced HCBM panel without opening performed well compared to other types of wall panels in lateral load resistance and displacement ductility. In all the wall panels, shear cracks originated at loading point and moved towards the compression toe of the wall. The force reduction factor of a wall panel with opening is much less when compared with fully reinforced wall panel with no opening. The displacement values obtained by non-linear FE analysis are found to be in good agreement with the corresponding experimental values. The influence of mortar joint has been included in the stress-strain behaviour as a monolith with HCBM and not considered separately. The derived response reduction factors will be useful for the design of reinforced HCBM wall panels subjected to lateral forces generated due to earthquakes.