With the popularization of light wood structure houses, the accuracy requirements of seismic performance analysis are more stringent. In order to accurately reflect the displacement demand and seismic capacity of light wood structure under earthquake action, so as to ensure the safety of the structure, this paper introduces an improved Pushover analysis method based on performance-based seismic design, combined with structural yield point, load mode and shape vector, and analyzes the difference between modal Pushover method and improved Pushover method in seismic performance of two-story light wood structure buildings. The results show that the accuracy of the modal Pushover analysis method to estimate the top displacement demand of the structure is still acceptable, but the estimation result of the inter-story displacement demand is seriously low. The improved Pushover analysis method reduces the estimation error of vertex displacement demand and interlayer displacement demand, among which the estimation error of interlayer displacement demand is the most significant, and the error can be controlled at about 10%. This method has high estimation accuracy and can provide reference for theoretical analysis and practical engineering application of light wood structure.