A damage in structure alters its dynamic characteristics. The change is characterized by changes in the modal parameter, i.e., modal frequencies, modal damping value and mode shape associated with each modal frequency. Changes also occur in some of the structural parameters; namely, the mass, damping, stiffness matrices of the structure. In this paper, evaluation of changes in stiffness matrix of a structure is presented as a method not only for identifying the presence of the damage but also locating the damage. It is shown that changed stiffness matrix can be accurately estimated a sensitivity coefficient matrix derived from modifying mode shapes, First, with 4 story shear structure models, the effect of presence of damage in a structure on its stiffness matrix is studied. By using these analytical model, the effectiveness of using change of stiffness matrix in detecting and locating damages is demonstrated. To validate the predicted changing stiffness and its location, the obtained results are compared to the reanalysis result which shows good agreement.