Prefabricated timber modules are being increasingly used in the load-bearing structure of entire residential buildings reaching heights up to six stories. The development is driven by the demand of high-quality housing that remains affordable while fulfilling tough environmental requirements imposed on modern construction. To enable further development of this type of buildings additional research is needed despite the considerable number of studies previously performed. This study provides an extensive experimental investigation by subjecting three modules to three different load cases. In each load case, the modules were initially loaded with dead-load placed atop of the module. Thereafter the modules were laterally loaded at the top using a servo hydraulic piston in displacement control. The main aim of the study was to assess the structural behavior of these modules under combined lateral and vertical loading, and also to generate experimental data suitable for verification of finite element models. Results from the test series reveal significant variation in racking stiffness and racking strength depending on the module’s design. Furthermore, in some cases more stiff and stronger mechanical inter-module connections are needed to enhance their global structural performance. Finally, the experimental results reveal that the modules are relatively ductile in their shear response when subjected to horizontal load.