Taking into consideration the seismic vulnerability of older buildings and the increasing need for reducing their carbon footprint and energy consumption, the application of an innovative system is investigated; the system is based on the use of textile reinforced mortars (TRM) and thermal insulation as a means of combined seismic and energy retrofitting of existing masonry walls. Medium scale tests were carried out on masonry walls subjected to out-of-plane cyclic loading. The following parameters were investigated experimentally: one-sided versus two-sided insulation and/or TRM jacketing, placement of the TRM outside the insulation or in a sandwich form (over and under the insulation), as well as the displacement amplitude of the loading cycles. A simple analytical method is developed and is found in good agreement with test results. Additionally, numerical modeling is carried out and is also found in good agreement with test results. From the results obtained in this study the authors believe that TRM jacketing may be combined effectively with thermal insulation, increasing the overall strength and energy efficiency of the masonry panels in buildings.