This paper deals with a full-steel ductile Circular Hollow Section (CHS) bracing system, already employed for the rehabilitation of steel moment-resisting frames (SMRFs) damaged in the 2017 Iran Sarpol-e-Zahab earthquake of 7.3 magnitudes (Mw). The bracing device is experimentally qualified under monotonic and cyclic inelastic axial loading. It proves to have excellent ductility, energy dissipation capacity, comparable inelastic deformations under compression/tension, and stable/full hysteresis loops. A nonlinear finite element (FE) approach with element birth/death and ductile damage mechanics schemes is used to model the seismic performance of an earthquake-damaged SMRF rehabilitated with the ductile-CHS knee bracing. The results show that the proposed ductile CHS knee bracing effectively improves the seismic performance of the damaged frame. Based on experimental/numerical qualifications, the proposed CHS knee bracing may be recommended as a ductile, energy-absorbing, cost-effective, easy-to-construct, and replaceable structural device.