In a framework to develop a prefabricated thermal insulation wall system assembled by Autoclaved Aerated Concrete (AAC) wall with thermal insulation and architectural cladding, this paper reported the feasibility of the wall system by investigating shear and pull-out strength of steel anchor installed in AAC. The wall system is designed to withstand wind load 100 kg/m2 horizontally. In addition to resisting the designed wind load by its pull-out strength, the 400 x 400 mm steel anchor array is also designed to resist hanging weight of thermal insulation and weight of architectural cladding by its shear strength. Three samples of each steel thread diameters 8, 10, 12 and 16 mm installed in AAC by using Polyester adhesive were tested for their short-term shear and pull-out strength. From the shear tests of anchor in AAC, average maximum forces from steel anchor diameters 8, 10, 12 and 16 mm were 247.4, 237.6, 250.2 and 254.5 kg consecutively. From the pull-out tests of anchor in AAC, average maximum forces from steel anchor diameters 8, 10, 12 and 16 mm were 116.5, 189.8, 210.2 and 249.6 kg consecutively. With their statistical Standard Deviations, 5% quantile values were derived as their characteristic strengths. Afterwards the design strength was proposed by dividing the characteristic strength by suggested material factor of safety 3.5. Eventually the design shear strengths were 30, 54, 31 and 44 kg and the design pull-out strengths were N/A, 7, 36 and 33 kg for steel anchor diameter 8, 10, 12 and 16 consecutively per one anchor. The results showed that steel anchor diameter 12 mm was capable to withstand the required loads and was the most economically suitable as an anchor for distance arrangement at 400 x 400 mm