This paper presents a new wavelet-based structural diagnostic technique. A continuous Gabor wavelet transform is shown to a very effective method in detecting damage in a beam. The beam is excited by a broad-band excitation force. For satisfactory results, the selection of an optimal wavelet is very important though the wavelet transform outperforms existing techniques such as the Wigner-Ville distribution. A specific example is given in a solid circular cylinder with a small defect