This study evaluates seismic capacity of the unreinforced masonry buildings with the selected template designs constructed per pre-modern code in Albania considering nonlinear behaviour of masonry. Three residential buildings with template designs were selected to represent an important percentage of residential buildings in medium-size cities located in seismic regions of Albania. Selection of template designed buildings and material properties were based on archive and site survey in several cities of Albania. Capacity curves of investigated buildings were determined by pushover analyses conducted in two principal directions. The seismic performances of these buildings have been determined for various earthquake levels. Seismic capacity evaluation was carried out in accordance with FEMA (Federal Emergency Management Agency) 440 guidelines. Reasons for building damages in past earthquakes are examined using the results of capacity assessment of investigated buildings. It is concluded that of the residential buildings with the template design, with the exception of one, are far from satisfying required performance criteria. Furthermore, deficiencies and possible solutions to improve the capacity of investigated buildings are discussed.