A set of individual URM walls as well as an assemblage of a three-storey URM hollow clay block masonry structure composed of two shear- and two cross-walls have been tested in original and strengthened state. As a method of strengthening, the coating of the walls, consisting of glass fiber reinforced polymer (GFRP) grid laid in fiber reinforced cementitious mortar matrix (sometimes called textile reinforced mortar), anchored to the walls with glass fiber anchors, has been used. All specimens were subjected to constant vertical load simulating the effect of gravity loads and cyclic horizontal displacements with step-wise increased amplitudes, induced either at the top of the walls or at the floor levels of the assemblage, simulating the effect of seismic loads.The observed behaviour and failure mechanisms were of the shear type. The results show that by the application of FRP reinforced coatings, the seismic performance of URM structures can be significantly improved. As the results of experiments indicate, the energy dissipation, displacement capacity and shear resistance of URM increase substantially. In this regard, adequate anchoring of coating to the masonry and into the r.c. floor structures is essential.