This research examines the seismic energy dissipation potential of steel structures by focusing on new types of specially engineered cladding-to-frame connections. Traditional connection details consist of rigid restraints of cladding panels, resulting in seismic design that only considers the panel self-weight with connection design left up to the precast fabricators and typical details. It is postulated that by considering these elements to actively participate in building response a more efficient and resilient structure could be designed which accurately captures the effects of non-structural cladding elements on building behavior. In this preliminary research, two mechanisms to dissipate seismic energy using engineered cladding systems are presented. Analysis results on a reference steel building indicate that demands on structural elements may be significantly reduced.