In this study, newly improved damage detection algorithms of the recent researches have been investigated in time-frequency domain analysis. It is known that effective damage assessment can be made on accelerations, velocities and displacements as kinematic information and the derived energy consumption through dynamic behavior of a structural system in view of structural health studies. The wavelet transforms are applied to the kinematic parameters inferred from analytical models which do not have stationary and ergodic characteristics and results are used to determine the damage potentials of the structural members and nonlinearity if exist. Cases in which the continuous wavelet transform and wavelet packet transform are applied show great potential for an effective damage detection. It is believed that these methods should be used in a complementary way to effectively and correctly assess the health condition of an engineering structure.