This paper presents the results of an experimental campaign investigating the seismic behaviour of full-size cross laminated timber (CLT) wall systems with sound-insulated shear-tension angle brackets. The main aim of the study was to investigate the influence of more and less flexible soundproofing bedding under the CLT wall. The paper shows a comparison of lateral load-bearing capacity, displacement capacity, ductility and stiffness obtained from racking tests on uninsulated specimens and specimens with various types of bedding insulation and levels of vertical load. Moreover, an analytical procedure to estimate the lateral load-displacement response of CLT walls with bedding insulation is proposed. This model is verified by direct comparison to the experimentally determined lateral load-displacement backbone curves. The results show that the elastomeric bedding does not have a significant effect on the bearing capacity of the wall system tested, but it reduces the stiffness and increases the displacement capacity. Due to the large decrease in stiffness, the insulation causes an overall reduction in ductility. The analytical estimation proposed was able to capture the reduction in lateral stiffness and adequately predict the load-bearing capacity.