A series of studies on self-centering frame structures initiated since the 1990s have thoroughly validated the effectiveness of this system in controlling the damage of structural components. However, these studies primarily focused on controlling the damage to structural components, with limited analyses on the response of non-structural infill walls in self-centering structures. This limitation has to some extent hindered the engineering application of self-centering structures. To investigate the seismic performance and damage evolution of autoclaved aerated concrete (AAC) block infill walls in a self-centering frame structure, and verify the effectiveness of separation method in mitigating the wall damage, a single-story single-span self-centering frame was established as the platform for conducting quasi-static tests. The digital image correlation (DIC) technique was employed to detect the damage development of the wall. The test results demonstrated that the fully infilled wall was subject to overall lateral compression from the adjacent columns and the damage concentrated at the contact regions. The self-centering frame with a fully infilled AAC block wall showed improved performance in terms of strength, stiffness and energy dissipation, whereas the wall damage was severe. Moreover, it was verified that the self-centering design helped to suppress the development of residual displacement caused by the damaged infill wall and achieve a repairable-level residual displacement response. The adoption of a separation layer between the infill wall and the structural members could effectively mitigate the damage to the infill wall and the separated infill wall barely affected the hysteresis performance of the structure.