The purpose of this study is to investigate the influence of material and geometric nonlinearities occurring in beams, columns and walls of RC frame-wall structural systems when undergoing severe ground excitations. For this purpose, a low-rise RC building is considered with and without walls, and the joining beams and columns are designed with the strong-column weak-beam concept. The dimensions, material properties and the reinforcement amounts are calculated in accordance with the values suggested in design codes. Each structure is analyzed for various levels of applied vertical force and change in wall stiffness / where the effect of geometric nonlinearity is considered for each case. Force formulation frame elements with spreading inelasticity over the span are used for the modelling of each beam, column and wall. The coupling of the section forces is obtained by the fibre discretization of the section into several material points. Each section is divided into confined and unconfined regions and appropriate material properties are used for concrete and steel for cyclic loading. Both static pushover and dynamic analyses are performed in order to replicate the worst case scenario for a possible earthquake. From this study, it is concluded that the beams and columns of a frame-wall structural system should be designed carefully for load redistributions resulting from the yielding of the wall in the case of a strong earthquake, thus the design codes should address this situation for both in the retrofit of existing frame buildings with walls and in the construction of new frame-wall type buildings.