This paper presents a novel structural system developed to enhance the seismic performance of low-rise timber frame buildings. The system comprises a continuous wall made of a cross laminated timber (CLT) panel and friction dampers installed between the CLT panel and columns. Full-scale shaking table tests were conducted on a two-story timber frame structure with/without the proposed system, revealing that the CLT panel prevents damage concentration to a specific story and the dampers improve energy dissipation capacity of the timber structure.