Reinforced concrete (RC) shear walls are commonly used as lateral load-resisting systems in construction projects. In this study, the seismic performance of slender RC shear walls was numerically investigated using the LS-DYNA simulation software. The walls are subjected to both lateral and axial loads to study the effect of axial load on seismic performance. Axial loads were applied at 0%, 10%, 20% and 30% of the wall’s load-carrying capacity. The results indicate that including axial compression loads leads to a higher lateral force required to achieve a certain displacement than no axial loading. Additionally, the energy dissipation rate is related to the increase in axial compression load. The presence of axial loads reduces the pinching effect but gives rise to the P-delta effect, which could lead to earlier failure compared to a wall without axial force.