Seismic performance of a three-storey unreinforced masonry building which survived the 1992 Erzincan earthquake without damage is evaluated. Mechanical properties of the masonry walls have been determined experimentally by using identical brick and mortar used in construction. An accurate material model is developed for masonry and employed in a computer program for the non-linear dynamic analysis of masonry buildings. The analytical results based on measured material properties indicated that masonry buildings which satisfy basic seismic code requirements possess remarkable lateral strength, stiffness and energy dissipation capacity. Accordingly, a simple elastic design approach is rendered suitable for unreinforced masonry under seismic excitations, provided that realistic material properties are employed in design.