Vibration-based damage identification method using embedded sensitivity functions is discussed. The theory of embedded sensitivity functions is reviewed and applied to identify damage in a three degree-of-freedom system and a metallic panel. Embedded sensitivity functions are algebraic combinations of measured frequency response functions that reflect changes in the response of mechanical systems when mass, damping or stiffness parameters are changed. By comparing the embedded sensitivity functions with finite difference functions using undamaged and damaged frequency response functions, damage is shown to be properly detected, located and quantified in theory and practice assuming that structures of interest are only damaged in one location. Simulated and experimental results indicate that the technique is most effective when changes to frequency response functions are small to avoid distorsions in the estimated perturbations due to variations in the sensitivity functions.