This paper presents a recursive stochastic subspace identification (RSSI) technique foron-line and almost real-time structural damage diagnosis using output-only measurements.Through RSSI the time-varying natural frequencies of a system can be identified. Toreduce the computation time in conducting LQ decomposition in RSSI, the Givensrotation as well as the matrix operation appending a new data set are derived. Therelationship between the size of the Hankel matrix and the data length in each shiftingmoving window is examined so as to extract the time-varying features of the systemwithout loss of generality and to establish on-line and almost real-time systemidentification. The result from the RSSI technique can also be applied to structuraldamage diagnosis. Off-line data-driven stochastic subspace identification was usedfirst to establish the system matrix from the measurements of an undamaged(reference) case. Then the RSSI technique incorporating a Kalman estimator isused to extract the dynamic characteristics of the system through continuousmonitoring data. The predicted residual error is defined as a damage feature andthrough the outlier statistics provides an indicator of damage. Verification ofthe proposed identification algorithm by using the bridge scouring test data andwhite noise response data of a reinforced concrete frame structure is conducted.