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This paper assesses the influence of cyclic and in-cycle degradation on seismic drift demands in moment-resisting steel frames (MRF) designed to Eurocode 8. The structural characteristics, ground motion frequency content, and level of inelasticity are the primary parameters considered. A set of single-degree-of-freedom (SDOF) systems, subjected to varying levels of inelastic demands, is initially investigated followed by an extensive study on multi-storey frames. The latter comprises a large number of incremental dynamic analyses (IDA) on 12 frames modelled with or without consideration of degradation effects. A suite of 56 far-field ground motion records, appropriately scaled to simulate 4 levels of inelastic demand, is employed for the IDA. Characteristic results from a detailed parametric investigation show that maximum response in terms of global and inter-storey drifts is notably affected by degradation phenomena, in addition to the earthquake frequency content and the scaled inelastic demands. Consistently, both SDOF and frame systems with fundamental periods shorter than the mean period of ground motion can experience higher lateral strength demands and seismic drifts than those of non-degrading counterparts in the same period range. Also, degrading multi-storey frames can exhibit distinctly different plastic mechanisms with concentration of drifts at lower levels. Importantly, degrading systems might reach a "near-collapse" limit state at ductility demand levels comparable to or lower than the assumed design behaviour factor, a result with direct consequences on optimised design situations where over-strength would be minimal. Finally, the implications of the findings with respect to design-level limit states are discussed

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