The objective of this paper is to introduce a new method for structural damage detection based on experimentally obtained modal parameters. The new method is suitable for detection of fatigue damage occurring in an aluminium cantilever beam. The damage has been practically realised as saw cuts of different sizes and at different locations. The first step of analysis included an attempt of damage identification with the most often used damage indicators based on measured modal parameters. For that purpose special signal processing technique has been proposed improving the effectiveness of indicators tested. However the results obtained have not been satisfactory. That was the motivation for defining new damage indicators (frequency change based damage indicator, Hybrid Damage Detection method), utilising the change of natural frequencies and any mode shape (measured or modelled) as the measurement of frequencies is much less time consuming in comparison to total mode shape measurement. It has been shown that the proposed technique is suitable for damage localisation in beam-like structures.