Traditional viscous damping wall (VDW) needs large wall area to provide large damping force. In order to solve this problem, a viscous damping wall with displacement amplification lever (VDW-DAL) was proposed. Hysteretic experiment of traditional VDW and VDW-DAL specimens was carried out to verify the amplification effect of VDW-DAL. After adding displacement amplification factor into damping force formula of traditional VDW, a new damping force formula for VDW-DAL was obtained and it fit well with the experimental results. The slip phenomenon of hysteretic curves caused by gap was simulated and the effect of gap ratio on energy dissipation reducing rate was analyzed by theoretical derivation.