In order to find out the influence of embedded walls to aseismic performances of timber structure,Taihe Palace in the Forbidden City was taken as example for analysis by simulation methods. Based on mechanical characteristics of tenon-mortise joint as well as bracket sets, 2 finite element models of Taihe Palace were built with and without embedded walls. By modal analysis, spectrum response and time history analysis, the influence of embedded walls to main modes as well as seismic responses of timber structure under different intensity of earthquakes were studied. Results showed that with the consideration of embedded walls, the basic frequency of Taihe Palace increases. Its vibration at wall locations is inconspicuous. Under 8 degree intensity of earthquakes, its internal forces generally increase, however peak distortion value of its timber structure decreases to avoid overturn, especially under rarely occurred earthquakes.