In this investigation, a U-shaped connection (U-C) was introduced for a prefabricated steel plate shear wall with beam-only connections. This design replaces a portion of shear bolts with tension bolts to enhance bolt efficiency and reduce the overall bolt count, and it is suitable for a prefabricated high-rise steel structure. Four 1/3 scale specimens were designed, and an array of performance aspects including failure modes, hysteretic behavior, skeleton curves, energy dissipation capacity, stiffness degradation, and key performance indicators were systematically investigated through a combination of quasi-static tests and finite element analyses. The results showed that the combination arrangement of tensile and shear bolts in U-C effectively reduced the usage of bolts used and reduced installation costs; under low cycle reciprocating loads, the ultimate bearing capacity and energy dissipation capacity of a beam-only-connected prefabricated steel plate shear wall with U-shaped connection (BPSW-U) had slightly decreased compared with the prefabricated steel plate shear wall with discontinuous cover-plate connection (DCPC). Nevertheless, the BPSW-U excelled in preserving the integrity of the frame beams, channeling structural plastic deformations primarily into the infilled steel plate. This design feature ensures that post-earthquake functionality recovery can be achieved by simply replacing the infilled steel plate.