The effects of connection flexibility and material yielding on the behavior of plane steel frames subjected to static (monotonic) loads are presented in this paper. Two types of material nonlinearities are considered: flexible nodal connections and material yielding, as well as geometric nonlinearity of the structure. To account for material yielding, a plastic hinge concept is adopted. A flexible connection is idealized by nonlinear rotational spring. Plastic hinge is also idealized by nonlinear rotational spring attached in series with the rotational spring that accounts for connection flexibility. The stiffness matrix for the beam with flexible connections and plastic hinges at its ends is obtained. To illustrate the validity and accuracy of the proposed numerical model, several examples have been conducted.