Abstract: New Industrial prefabricated steel frame with diagonal brace is consists of steel truss beam，steel column and steel diagonal brace． The truss beam and diagonal brace are different from the traditional one，whose transferring way of force，mechanical behavior and failure mechanism are not examined． The static test and finite element analysis were done for the single span，single cross and single deck steel frame，aims to study the ultimate bearing capacity of horizontal load，deformation characteristics，failure mechanism and ductility performance． The results of test and analysis show that prefabricated brace frame has strong ability to withstand the horizontal load，the power transmission path is clear，and the damage is located at the mid web member of truss beam． While truss beam is damaged，the frame column and the nodes are in elastic state． The frame can meet the structural requirements ofstrong jiont， weak componentsandstrong column，weak beamseismic design requirements．