A hollow precast concrete shear wall (HPCSW) with multiple vertical hollow cores that is advanced in lightweight and thermal insulation is studied in this paper. Novel tapered grouted sleeves (TGSs) are developed to connect the adjacent shear walls, which can avoid grouting defects through visible grouting processes. Seven full-size specimens with an aspect ratio of 3.3, including three solid precast shear walls, three hollow precast shear walls, and a cast-in-place (CIP) shear wall, were subjected to cyclic loading tests, which considered different and high axial compression ratios (ACRs) of 0.3, 0.45, and 0.6. The results show that the solid precast shear wall with the TGS connection displays comparable failure mode and seismic behavior with the CIP one. In contrast, the HPCSW suffers hollow core crushing under high ACRs, leading to a significant reduction in deformation and energy dissipation capacity. Finally, numerical models of HPCSW specimens with different layouts of the hollow cores were established using ABAQUS to evidence the test results and optimize the structure. The results show that the configuration of the outer hollow cores influences the seismic behavior of the HPCSW vastly. It is recommended that the concrete is partially filled into the outer hollow cores to obtain good insulation and seismic capacity simultaneously, with the filling height greater than the predicted crushing height.