This paper reports pull–down tests performed on full–scale two–storied rammed earth (RE) buildings to assess the out–of–plane performance of RE construction in Bhutan. An innovative strengthening technique is also proposed for strength enhancement of the RE walls. The tests involved two types of specimens, an unreinforced RE structure and an identical reinforced counterpart. The pull–down load was applied on top of the facade. The strengthening strategy involved reinforced concrete sections of dowels and wedges inserted between the RE blocks at regular intervals. The wooden floor beams at the first–floor level were also anchored to the RE blocks in the reinforced specimen. Micro–tremor measurements of the structures were done prior to the pull–down tests. A maximum of 59% increment in peak pull–down load was observed for the reinforced RE specimen compared to its unreinforced counterpart. The unreinforced RE wall showed damage to a larger area of façade, whereas, the reinforced RE specimen showed damage to a relatively smaller zone with controlled failure mechanism.