In this study, a new damage detection method using an inclinometer which can directly measure rotational displacement is developed and its effectiveness investigated. In order to verify the attractive features of the proposed method such as an increase in sensitivity and the data loss minimization, numerical analyses were performed by the uniform load surface curvature (ULSC) method, which is the damage detection method based on the modal flexibility matrix. For numerical analysis, 2 m simply supported beam, which has 20 elements and 21 nodes is considered. From the results of the eigenvalue analysis, the damage locations were perfectly detected in each damage case. It shows that the damage detection using rotational displacement is theoretically possible. From the result of numerical simulations, the damage locations were detected exactly. When compared with the detection method based on vertical displacements obtained from accelerometers, it is shown that using the rotational displacement is much more sensitive than using the vertical displacement. Overall, when compared with the accelerometer data, the damage detection performed by an inclinometer was more sensitive.