The purpose of this study is to present the damage detection method on shear building structures by wavelet transformation. The damage location index using 1st mode shape is observed theoretically to find out damage location. The damage detection method is applied to numerical analysis model such as MATLAB for the verification. The shacking table test on 3 story shear building is performed for the examination of the damage detection method. Wavelet transformation and directly fast fourier transformation are performed for the data, and damage index is compared. Finally the applicability of the wavelet transformation for damage detection is examined.