Hysteresis is a nonlinear phenomenon observed in the dynamic response behavior of numerous structural systems under high intensity cyclic or random loading, as well as in numerous mechanical and electromagnetic systems. For several decades, hysteretic response analysis of structural systems has been widely studied and numerous hysteresis models have been proposed and utilized in order to reproduce and better understand the complex hysteretically degrading behavior of structural systems. An important area of research in this regard has been the parameter identification of hysteretic systems. In this paper, we propose a modified Prandtl–Ishlinskii model to simulate the asymmetric hysteresis, which is the complex behavior in structural systems. In addition, a new approach based on particle swarm optimization and least-mean square algorithm is utilized for parameter identification of this hysteresis model. Finally, the model is applied in structural dynamic response analysis of a base isolated structural model under seismic load.