A two-step damage identification method based on elemental modal strain energies and natural frequencies has been presented for a beam-like structure. In the first stage, this method makes use of the change of elemental modal strain energy before and after damage to locate the potential damage regions. And in the second stage, a damage identification algorithm based on the frequency changes is developed to calculate the damage extent and further determine the actual damage locations. The performance of the proposed method is numerically demonstrated by a simply supported beam with two damage cases. Results indicate that the method can identify the damage location and quantify the damage severity accurately in a beam-like structure.