This study mainly treats a new type of the bracing friction damper system, which is able to minimize structural damage under earthquake loads. The slotted bolt holes are placed on the shear faying surfaces with an intention to dissipate considerable amount of friction energy. The superelastic shape memory alloy (SMA) wire strands are installed crossly between two plates for the purpose of enhancing recentering force that are able to reduce permanent deformation occurring at the friction damper system. The smart recentering friction damper system proposed in this study can be expected to reduce repair cost as compared to the conventional damper system because the proposed system mitigates the inter-story drift of the entire frame structure. The response mechanism of the proposed damper system is firstly investigated in this study, and then numerical analyses are performed on the component spring models calibrated to the experimental results. Based on the numerical analysis results, the seismic performance of the recentering friction damper system with respect to recentering capability and energy dissipation are investigated before suggesting optimal design methodology. Finally, nonlinear dynamic analyses are conducted by using the frame models designed with the proposed damper systems so as to verify superior performance to the existing damper systems.