The failure of civil engineering structure will lead to heavy losses. So, identifying structural damage is necessary as early as possible. The excellent localization performance of lifting wavelet transform will facilitate significantly damage diagnosis. On the base of wavelet energy distribution of structural acceleration response, taking advantage of characteristics of lifting wavelet and entropy, the structural damage identification method based on lifting wavelet entropy is proposed in this paper. And the lifting wavelet time entropy index and the relative lifting wavelet entropy index are established. The new method and damage indexes are verified in numerical simulation and laboratory test of simple beam. The analysis results show that lifting wavelet time entropy can identify structural damage moment and the relative lifting wavelet entropy can identify structural damage location. The feasibility of method proposed is instructed.