The impedance-based damage detection technique has the potential for health monitoring of different types of structures. However, it is necessary to consider the temperature effect on the impedance signal in applying this technique to actual structures. In this study, an effective impedance-based damage detection method that compensates for the temperature effect was developed. Experimental tests on a steel frame structure connected with high tensile bolts were performed. Moreover, the temperature effect on the impedance damage index was compensated for detecting damage caused by bolt looseness; that is, the relationship between the impedance damage index and the temperature was established through long-term measurements. Based on this relationship, damage detection was performed by compensating for the temperature effect. Because the damage index after the bolt loosening reflects the effects of temperature and damage, it is difficult to evaluate the damage by monitoring only the damage index. However, after compensating for the temperature effect, it was observed that the damage could be estimated precisely. The damage was effectively monitored after measuring the impedance signal and temperature over a specific period for the initial healthy structural state, analyzing the correlation between the impedance damage index and temperature, and setting an appropriate warning criterion based on the correlation.