This paper presents experimental validation of an innovative precast concrete cladding panel system that can resist design level inter-story drifts through 'rocking' of panels without incurring any significant damage. Two precast panels are manufactured with four vertically-slotted steel-embeds, allowing the bolts connecting the panels to the structure to slide and the panels to rock up to an intended lateral drift demand. The panels are placed adjacent to each other with a 15 mm wide vertical joint in between them, interjected with sealant, on a single-story steel frame, and subjected to quasi-static in-plane drift cycles. The test results show the ability of the 'rocking' panels to accommodate large lateral drifts (up to 4% in this test) without any noticeable damage to the panels or their connections requiring repair. The only damage observed during the test was distortion and tear of the sealant at close to 2% drift levels.