This paper investigated the seismic behavior of a prefabricated steel braced frame structure with hinged joints. Six steel frame specimens with different enclosure walls were tested under pseudo-static loading. The results indicated that the vertical load of the hinged braced frame system was mainly resisted by the beam and column members, and the lateral stiffness was completely provided by the bracing members. The final failure mode of all specimens was the failure of the bracings, while the beam-column members and the joints remained largely intact. The rigidly braced specimen was mainly damaged by buckling, yielding, and tearing, and the flexibly braced specimen was mostly damaged by buckling, yielding, and node failure. The energy dissipation of the specimens primarily depended on lateral force-resistant components such as braces and enclosure walls. Different building envelopes exert significant effects on the lateral stiffness and energy dissipation capacity of the structure. The ductility coefficient of all specimens ranged between 1.4 and 1.9, which indicates that the structural system mainly relies on lateral stiffness and elastic deformation to resist earthquakes, rather than structural ductility. The proposed prefabricated steel frame system with hinged connections has wide prospects of application in economically underdeveloped areas because of its convenience in transportation and installation.