Yielding shear panel device (YSPD) is a relatively new passive energy dissipation device, which is designed to exploit the shear deformation capacity of metallic plates to absorb earthquake energy. YSPD is inexpensive and its simplicity in manufacturing and installation are the key to its possible commercialisation. The current research investigates the development of finite element (FE) models for YSPD using a general purpose FE software ANSYS; the modelling procedure is based on the test results obtained from the pilot testing scheme carried out at the University of Queensland and City University of Hong Kong. The developed FE models include both material and geometric nonlinearities. Nonlinear spring elements have been used to model the appropriate support conditions observed in the experiments. Results obtained from the FE analysis are compared against the test results for both monotonic and cyclic loadings. A theoretical approach is also proposed herein to predict the initial stiffness of the loaddeformation response of YSPD and the predictions obtained using the proposed analytic model are also compared against those available both from the experiments and the developed FE models. Additional results generated using the verified FE models will be used to develop design rules for YSPD.