This paper proposed an innovative dry joint utilizing embedded steel frame (ELSF), high strength bolt (HSB), and connecting steel frame (CSF) as connecting components to connect the upper and lower precast shear wall panels properly. In order to investigate the feasibility of this novel joint and the load-transferring mechanism of the connectors, experimental study and finite element analysis were conducted firstly; and then the load-transferring route of the joint was analyzed in consideration of the manufacture error of the connectors; eventually the distribution and redistribution of the stress in the connectors from elastic stage to elastic-plastic stage were studied, and the calculation model of the stress in CSF and the calculation formulas of the shear forces transferred by HSBs were deduced. The experimental investigation and finite element analysis show the innovative joint is feasible and its load-transferring route is concise. The mechanism analysis shows the stress in the compressive zone of CSF is larger than that in its tensile zone; and the shear forces transferred by the HSBs at the compressive zone are larger than those transferred by the HSBs at the tensile zone, so the HSBs at the compressive zone slipped firstly.