Reinforced concrete shear walls are used in tall buildings for efficiently resisting lateral loads. Due to the low tensile strength of concrete, reinforced concrete shear walls tend to behave in a nonlinear manner with a significant reduction in stiffness, even under service loads. To accurately assess the lateral deflection of shear walls, the prediction of flexural and shear stiffness of these members after cracking becomes important. In the present study, an iterative analytical procedure which considers the cracking in the reinforced concrete shear walls has been presented. The effect of concrete cracking on the stiffness and deflection of shear walls have also been investigated by the developed computer program based on the iterative procedure. In the program, the variation of the flexural stiffness of a cracked member has been evaluated by ACl and probability-based effective stiffness model. In the analysis, shear deformation which can be large and significant after development of cracks is also taken into account and the variation of shear stiffness in the cracked regions of members has been considered by using effective shear stiffness model available in the literature. Verification of the proposed procedure has been confirmed from series of reinforced concrete shear wall tests available in the literature. Comparison between the analytical and experimental results shows that the proposed analytical procedure can provide an accurate and efficient prediction of both the deflection and flexural stiffness reduction of shear walls with different height to width ratio and vertical load. The results of the analytical procedure also indicate that the percentage of shear deflection in the total deflection increases with decreasing height to width ratio of the shear wall. (C) 2009 Elsevier Ltd. All rights reserved.