To study the dry connections in precast shear wall structure, this paper presented a welded connection approach for precast shear wall vertical joint based on an existing advanced prefabricated composite wall system. By manufacturing and testing 5 specimens under monotonic static loadings, the shear pattern and deformability of the dry connection were studied. The results showed that the welded connection has a good shear patterns and deformability. The failure of the specimens began with the concrete cracks around the joints, and shear failure ultimately occurred in the connecting steel plates and anchor bars. Then, detailed analysis and comparison of material parameters were conducted by using finite element analysis software ABAQUS. It was observed that shear pattern of the welded connection was mainly determined by shear resistance of connecting steel plates, shear resistance of anchor bars, and compressive resistance of the concrete around pre-embedded steel plate, while longitudinal reinforcement, stirrup and pre-embedded steel plate had limited impact. It is concluded that this welded connection approach can be utilized for the vertical joint of precast shear wall.