This dissertation introduced a new hybrid building system in which the post-tensioned rocking CLT panels were coupled with traditional light-frame wood constructions. The initial study showed excellent self-centering and energy dissipation capacities of the hybrid walls. A finite element model was developed for rocking walls/columns and allowed to perform a global-analysis for structures using rocking elements. The model was validated by 3-D FEM models in ABAQUS and MATLAB, and an experimental test. A direct displacement-based design check procedure was proposed for CLT-LiFS buildings and illustrated by designing a six-story CLT-LiFS building. The FEM model for rocking elements was utilized to implement 2-D non-linear static analysis and non-linear time history analysis to check the design. After that, pseudo-dynamic hybrid simulation tests at three hazard levels were conducted for the six-story CLT-LiFS building, in which a two-story CLT-LiFS building was built and served as the physical substructure of the test. The tests showed minor damages and very small residual drifts to the building, even after MCE level. Finally, an optimization problem was developed for mid-rise to tall CLT-LiFS buildings using evolutionary algorithm. The variables including number of stories, hybrid wall length, CLT panel width, number of CLT panels and cable arrangement were considered so that the buildings were optimized in cost while still met their technical performance expectations. The normalized cost (for frame work) of optimum building configurations were in the range of 15.88 – 21.44 USD/sft. The study also archived several figures that will help select the building configuration in the design process of CLT-LiFS building.