At present, most of the damage detection techniques based on global vibration and local guided wave have obvious limitations, which brings difficulties to the safety assessment of structures. To solve this problem, a damage location identification method based on micro-dynamic balance and inverse finite element is proposed. Firstly, the vibration frequency, measuring point density and damage magnitude were determined by using finite simulation composite plate structure. Secondly, a fiber grating sensor is attached to the surface of the laminate to receive the strain response signal of the structure under steady-state vibration, and the global displacement of the structure is constructed by inverse finite element method. Finally, the inverse finite element listing is introduced into the theoretical framework of the dynamic response of the micro-element, and the structural damage identification experiment based on the measured strain data is realized. The experimental results show that this method can effectively identify the structural damage area and has a special sensitivity to structural damage, and the identification accuracy and efficiency are high.