This paper presents the experimental as well as analytical study conducted on layer-bonded scrap tire rubber pad (STRP) isolators to develop low-cost seismic isolators applicable to structures in developing countries. The STRP specimen samples were produced by stacking the STRP layers one on top of another with the application of adhesive. In unbonded application, the STRP bearings were placed between the substructure and superstructure without fastening between the contact surfaces which allows roll-off of the contact supports. The vertical compression and horizontal shear tests were conducted with varying axial loads. These results were used to compute the different mechanical properties of the STRP isolators including vertical stiffness, horizontal effective stiffness, average horizontal stiffness and effective damping ratios. The load-displacement relationships of STRP isolators obtained by experimental and finite element analysis results were found to be in close agreement. The tested STRP samples show energy dissipation capacity considerably greater than the natural rubber bearings. The layer-bonded STRP isolators serve positive incremental force resisting capacity up to the shear strain level of 150%.