Wavelet transforms are the emerging signal-processing tools for damage identification and time-frequency localization. A small perturbation in a static or dynamic displacement profile could be captured using multi-resolution technique of wavelet analysis. The paper presents the wavelet analysis of damaged linear structural elements using DB4 or BIOR6.8 family of wavelets. Starting with a localized reduction of EI at the mid-span of a simply supported beam, damage modeling is done for a typical steel and reinforced concrete beam element. Rotation and curvature mode shapes are found to be the improved indicators of damage and when these are coupled with wavelet analysis, a clear picture of damage singularity emerges. In the steel beam, the damage is modeled as a rotational spring and for an RC section, moment curvature relationship is used to compute the effective EI. Wavelet analysis is performed for these damage models for displacement, rotation and curvature mode shapes as well as static deformation profiles. It is shown that all the damage indicators like displacement, slope and curvature are magnified under higher modes. A localization scheme with arbitrary location of curvature nodes within a pseudo span is developed for steady state dynamic loads, such that curvature response and damages are maximized and the scheme is numerically tested and proved.