In this paper, an efficient dynamic analysis method of a building structure with viscoelastic dampers is proposed. Viscoelastic dampers are used for the purpose of controlling vibration of buildings. The matrix condensation technlque based on the rigid diaphragm assumption is not readily applicable for building structures with viscoelastic dampers. An improved procedure for damping matrix condensation is employed in the proposed method to increase the efficiency of analysis. Efficiency and accuracy of the proposed method are verified through analysis of an example structure.