The tailings microcrystalline foamed plate (TMF plate), produced from industrial waste tailings, has limited research regarding its use in high-performance building walls. Its brittleness under stress poses challenges. To improve its mechanical properties, a prefabricated light steel-tailings microcrystalline foamed plate composite wall (LS-TMF composite wall) has been proposed. This LS-TMF composite wall system integrates assembly, sustainability, insulation, and decorative functions, making it a promising market option. To study the in-plane performance of the composite wall, compression and seismic performance tests were conducted. The findings indicate that the light steel keel, steel bar, and TMF plate in the composite wall demonstrated good working performance. Strengthening the TMF plate enhanced the restraint on the light steel keel and improved the composite wall’s compressive performance. Increasing the thickness of the light steel keel further improved the compressive stability. Under horizontal cyclic loading, failure occurred at the light steel keel embedding location. Increasing the strength of the TMF plate was beneficial for the seismic performance of the composite wall. This structural configuration—incorporating light steel keels, TMF plates, and fly ash blocks—enhanced thermal insulation and significantly improved in-plane stress performance. However, the splicing plate structure adversely affected the seismic performance of the composite wall.