AbstractA Frequency Response Functions (FRFs)‐based two‐step algorithm to identify stiffness, mass, and viscous damping matrices is developed in this work. The proposed technique uses the difference between the experimentally recorded FRF and their analytical counterparts by minimizing the resultant error function at selected frequency points. In the first step, only mass and stiffness matrices are updated while keeping the uncalibrated viscous damping matrix constant. In the second step, the damping matrix is updated via changes on the selected unknown modal damping ratios. By using a stacking procedure of the presented error function that combines multiple data sets, adverse effects of noise on the estimated modal damping ratios are decreased by averaging the FRF amplitudes at resonant peaks. The application of this methodology is presented utilizing experimentally obtained data. The presented algorithm can perform an accurate structural identification via model updating, with a viscous damping matrix that captures the variation of the modal damping ratios with natural frequencies as opposed to other conventional proportional damping matrix formulations.