The conventional detection techniques are usually based on measuring the changes in natural frequencies, mode shapes, or other derivatives of linear system dynamic characteristics that are caused by structural damage. However, the conventional detection techniques above are not very sensitive to initially small damage. Thus, this research is to enhance system nonlinearity and to make a system generate bifurcation and even chaos by means of adding a nonlinear feedback loop to the system. Due to the sensitivity of a chaotic system to small parametric variations, the changes in system parameters can be identified by observing the changes of the system dynamics in state space.