Moving load and structural damage assessment has always been a crucial topic in bridge health monitoring, as it helps analyze the daily operating status of bridges and provides fundamental information for bridge safety evaluation. However, most studies and research consider these issues as two separate problems. In practice, unknown moving loads and damage usually coexist and influence the bridge vibration synergically. This paper proposes an innovative synchronized assessment method that determines structural damages and moving forces simultaneously. The method firstly improves the virtual distortion method, which shifts the structural damage into external virtual forces and hence transforms the damage assessment as well as the moving force identification to a multi-force reconstruction problem. Secondly, a truncated load shape function (TLSF) technique is developed to solve the forces in the time domain. As the technique smoothens the pulse function via a limited number of TLSF, the singularity and dimension of the system matrix in the force reconstruction is largely reduced. A continuous beam and a three-dimensional truss bridge are simulated as examples. Case studies show that the method can effectively identify various speeds and numbers of moving loads, as well as different levels of structural damages. The calculation efficiency and robustness to white noise are also impressive.