Abstract: The two-dimensional continuous wavelet transform (2D-CWT) and data fusion technique to enhance the noise immunity and engineering applicability of the framework of damage called iFEM-PE method which combines the inverse finite element method (iFEM) and pseudo-excitation method (PE) to identify damage were introduced. The example analyses show that iFEM can reconstruct the structural displacement accurately in real time with the finite strain measurement data, which makes the PE method get rid of the dependence of online displacement measurement. On the other hand, PE method has high sensitivity to structural damage, which is suitable for accurate location and quantification of damage. Because the iFEM-PE method is sensitive to the noise, 2D-CWT can realize joint signal analysis in time and frequency domain, strengthen damage characteristics and suppress noise. Moreover, data fusion technology effectively improves the applicability and stability of damage identification through the comprehensive processing of damage identification results under different working conditions. The results show that the above methods can accurately locate the delamination damage of composite structures under the influence of noise.