Strain　mode　is　sensitivity　to　structure　local　characteristics　and　wavelet　transform　has　high　local　property　in　time　and　frequency　domain.　By　combining　the　character　of　strain　mode　and　wavelet　transform,　strain　mode　is　adopted　as　response　signal　to　continuous　wavelet　analysis　for　damage　identification.　Damage　location　is　detected　by　modulus　maximum　and　damage　extent　is　detected　by　Lipschitz　exponent　of　wavelet　transform.　The　influence　of　multi-damage　to　Lipschitz　exponent　is　also　studied.　Theory　analysis　and　numerical　simulation　show　the　method　of　damage　identification　based　wavelet　transform　can　exactly　detect　the　location　and　extent,　and　with　the　crack　damage　extent　increase,　the　Lipschitz　exponent　decrease　for　single　damage　and　multi-damage.　The　identification　results　indicate　the　proposed　method　is　precision　and　facility　which　supply　theory　basis　for　engineering　practices.　©2010　IEEE.