To optimize the prefabricated canopy joints, improve the construction efficiency, and enhance the seismic performance of assembly joints, a novel mortise-tenon joint (MTJ) was proposed. To evaluate the seismic performance along the vertical and track directions, two 1:1.5 scaled specimens were tested under low-cycle reciprocated loading. The test results find the hysteretic curves in both directions exhibit the “pinch” effect especially in the vertical direction, indicating the feature of shear slippage. The displacement ductility coefficients were all above 5.0, and the ultimate drift ratios were 4.54% and 5.88% respectively, showing excellent deformation ability and ductility. The parameters, such as the sectional strength ratio, the stirrup ratio of the prefabricated beam, the reinforcement ratio and the cross-sectional area of the enlarged section, were analyzed by the validated finite element (FE) models. The analysis shows as the section strength ratio decreases and the stirrup ratio increased, the seismic bearing capacity improved, while the plastic hinge located on the prefabricated column varied to the prefabricated beam ends. Based on the results, it is recommended the number of longitudinal rebars through the prefabricated beam is 4, the stirrup diameter in the prefabricated beam is 10mm and the the column cap is no less than 400mm. Finally, based on the truss-diagonal strut model, a method for calculating the shear strength capacity of the novel joint was proposed. Compared with the test and FE results, the theoretical equations exhibit good computational accuracy.