The seismic behavior of masonry walls strengthened by cold rolled steel sheets is numerically evaluated in this study using finite element modeling in ABAQUS. Cold-rolled steel sheets cover two sides of an unreinforced masonry wall and are bolted together to form a composite masonry wall. The behavior of the composite masonry walls is compared to that of the corresponding unreinforced masonry walls with various failure mechanisms. The finite element models of the unreinforced masonry walls are validated through experimental data in the literature. Then, cold-rolled steel sheet-strengthened walls are simulated, and variations in strength, ductility, and failure mode are investigated. A thorough sensitivity analysis is conducted on the effects of the aspect ratio, boundary condition, axial load ratio, steel sheet thickness, and connection bolt configuration on the in-plane strength and failure mode of the walls. It is observed that the steel sheets affect the local and global behavior of the masonry walls and change their failure modes. The use of through-thickness bolts to connect steel sheets to the masonry wall provides a composite action between steel sheets and the masonry wall against in-plane lateral loads. The cold-formed steel sheets not only resist a portion of the lateral load but also significantly increase the lateral strength of the masonry walls and the ductility of the whole wall system. Based on the analysis results it can be concluded that strengthening masonry walls with cold-rolled steel sheets is a promising technique for the seismic improvement of existing conventional masonry buildings and for the design of new masonry buildings.