The theory of elastic stability is considered to be the most effective aspect which governs the safety of structures. Many studies have been developed to investigate the actual behavior of structures. The cladding which is used to cover most of the steel frames is neglected by most of the designers and is considered as a non-structural element. This research presents a comprehensive numerical method for studying the effect of cladding as a shear diaphragm and its role in maintaining lateral stability of the steel framed structures. For most of the designers, it is a common practice to maintain the lateral stability of the steel frames by providing the classical bracing system to resist the out of plane loads (wind, earthquake, blast,...etc.), however the cladding system may be the key element in maintaining the lateral stability of these structures.