Structures built with prefabricated timber modules have been recognised as an innovative construction method and have been implemented in several countries and regions. In recent years, there have been considerable research activities directed towards these types of structures. However, most of the studies have focused on modules made of steel and concrete in their load-bearing structures and only a few of them are exploring light-frame timber modules. This study focuses on the racking behaviour of light-frame timber modules through experimental and numerical investigations. Full-size tests were performed to examine the global and local structural behaviours of several test modules. A novel finite element model of the modules is also presented. It is a parameterised structural model with high flexibility concerning the generation of different module geometries, materials, fastener types and assembly methods etc. The numerical model was developed in the commercial finite element software ABAQUS, and the numerical results obtained were validated against results from experimental tests. The validation results indicate that the model is capable of achieving satisfactory accuracy in predicting both the global and local structural behaviour of light-frame timber modules. Furthermore, several parametric studies are conducted and discussed to examine how certain parameters affect the structural response of the modules.