A model-based fault detection filter is developed for structural health monitoring of a simply supported beam. The structural damage represented in the plant model is shown to decompose into a known fault direction vector maintaining a fixed direction, dependent on the damage location, and an arbitrary fault magnitude representing the extent of the damage. According to detection filter theory, if damage occurs, under certain circumstances the fault will be uniquely detected and identified through an associated invariance in the direction imposed on the fault detection filter residuals. The spectral algorithm used to design the detection filter is based on a left eigenstructure assignment approach which accommodates system sensitivities that are revealed as ill-conditioned matrices formed from the eigenvectors in the construction of the detection filter gains. The detection filter is applied to data from an aluminum simply supported beam with four piezoelectric sensors and one piezoelectric actuator. By exciting the structure at the first natural frequency, damage in the form of a 5 mm saw cut made to one side of the beam is detected and localized. (c) 2006 Elsevier Ltd. All rights reserved.