This research introduces a novel gusset plate damper designed to safeguard structures from intense seismic activity and enhance the performance of X-braced frames. The damper includes a grooved plate with multiple parallel steel strips, and cross braces segmented into four parts by the central grooved plate. Both sides of each brace segment, a set of strips is embedded within the gusset plate, oriented perpendicular to their corresponding brace axis. The X-braced frames equipped with grooved gusset plate damper (GGPD) were subjected to cyclic loading both experimentally and numerically. The experimental results demonstrated that the proposed system exhibits robust seismic performance. Employing ABAQUS, the calibration results demonstrated excellent agreement between the experimental and numerical outcomes, affirming the accuracy of the finite element method in predicting the cyclic behavior and fracturing patterns of this innovative system. Additionally, the study delved into the local buckling and the necessity of incorporating stiffeners for the grooved plate damper along their edges, evaluating their impact on the main characteristics of the new damper. The findings revealed that when appropriately reinforced at its edges, the proposed damper demonstrates excellent behavior and stable hysteretic curves. Moreover, decreasing the width-to-thickness ratios of steel stiffeners in the GGPD resulted in wider hysteresis loops. Findings indicated that a width-to-thickness ratio of 7 yields favorable outcomes for design parameters, including lateral elastic stiffness and ultimate strength.