For the large deformation of shear walls under vertical and horizontal loads, there are difficulties in obtaining accurate simulation results using the response analysis method, even with fine mesh elements. Furthermore, concrete material nonlinearity, stiffness degradation, concrete cracking and crushing, and steel bar damage may occur during the large deformation of reinforced concrete (RC) shear walls. Matrix operations that are involved in nonlinear analysis using the traditional finite-element method (FEM) may also result in flaws, and may thus lead to serious errors. To solve these problems, a planar four-node element was developed based on vector mechanics. Owing to particle-based formulation along the path element, the method does not require repeated constructions of a global stiffness matrix for the nonlinear behavior of the structure. The nonlinear concrete constitutive model and bilinear steel material model are integrated with the developed element, to ensure that large deformation and damage behavior can be addressed. For verification, simulation analyses were performed to obtain experimental results on an RC shear wall subjected to a monotonically increasing lateral load with a constant vertical load. To appropriately evaluate the parameters, investigations were conducted on the loading speed, meshing dimension, and the damping factor, because vector mechanics is based on the equation of motion. The static problem was then verified to obtain a stable solution by employing a balanced equation of motion. Using the parameters obtained, the simulated pushover response, including the bearing capacity, deformation ability, curvature development, and energy dissipation, were found to be in accordance with the experimental observation. This study demonstrated the potential of the developed planar element for simulating the entire process of large deformation and damage behavior in RC shear walls.