Abstract: Several key problems in bridge health monitoring are analyzed, and the importance of signal-processing and data analysis were pointed out. Due to the advantage of wavelet analysis in the field of signal-processing and data analysis, wavelet analysis method is presented to realize signal de-noise, signal detection, feature extraction and data compression in bridge health monitoring system. With application examples, it is shown that the wavelet analysis is very effective to solve special problems in bridge structure health monitoring system. Based on wavelet analysis, a four-step method for structural damage identification is presented, by which damage alarming, damage validity, damage location and damage qualification may be conducted in long-span bridges. It is shown that there is a good perspective to utilize wavelet analysis in bridge health monitoring.