Mode shape-based structural damage identification methods have been widely investigated due to their good performances in damage localization. Nevertheless, the evaluation of mode shapes is severely affected by the measurement noise. Moreover, the conventional mode shape-based damage localization methods are normally proposed based on a certain mode and not effective for multi-damage localization. To tackle these problems, a novel damage localization approach is proposed based on locally perturbed dynamic equilibrium and data fusion approach. The main contributions cover three aspects. Firstly, a joint singular value decomposition technique is proposed to simultaneously decompose several power spectral density transmissibility matrices for robust mode shape estimation, which statistically deals better with the measurement noise than the traditional transmissibility-based methods. Secondly, with the identified mode shapes, an improved pseudo-excitation method is proposed to construct a baseline-free damage localization index by quantifying the locally damage perturbed dynamic equilibrium without the knowledge of material/structural properties. Thirdly, to circumvent the conflicting damage information in different modes and integrate it for robust damage localization, a data fusion scheme is developed, which performs better than the Bayesian fusion approach. Both numerical and experimental studies of cantilever beams with two cracks were conducted to validate the feasibility and effectiveness of the proposed damage localization method. It was found that the proposed method outperforms the traditional transmissibility-based methods in terms of localization accuracy and robustness.