In recent years, timber has gained popularity as a sustainable construction material for seismic-resistant mid-rise buildings in Chile. However, the local seismic regulations were developed mainly for reinforced concrete structures and are very restrictive. This results in buildings with a high density of walls, short periods, and low ductility demands, restraining the full potential of timber structures. To address this issue, this paper reports the main findings of an interdisciplinary research project aimed at: (1) validating the current Chilean seismic regulations for wood-frame buildings against state-of-the-art collapse prevention standards, and (2) proving the feasibility of using less conservative ones. A holistic approach was adopted for this project at three different research stages. First, an exhaustive experimental program was carried out to study the lateral behavior of wood frame walls with different configurations and aspect ratios, where twenty-five walls were tested under different load conditions. Second, non-linear models were developed for connections, walls, and buildings, aiming at expanding the research capabilities beyond the lab results. And third, the seismic performance of 201 mid-rise wood frame buildings (up to six stories) was evaluated through static and dynamic three-dimensional analyses. Results showed that the current Chilean design factors (R = 5.5 and Dmax = 0.002) lead to resilient buildings with very good seismic behavior, while less conservative factors (R = 6.5 and Dmax = 0.004) also result in code-compliant structures that fulfill the primary objective of safeguarding life and preventing building collapse. Furthermore, it increases the benefit-cost ratio, leading to buildings that are economically more attractive.