The damping of spruce wood is analysed at different moisture content levels for the first three vibration modes of tangentially and radially vibrating samples. Two methods were used to determine the damping. The first was the vibration envelope fitting as an improved version of the well-known logarithmic decrement, and the second was the newer and recently increasingly used wavelet transform. Both methods showed that the damping of spruce wood first decreases and then increases with moisture content, with the damping in the first vibration mode being about 9% higher in the radial direction than in the tangential direction. In the second and third vibration modes, the damping in the tangential direction was higher than in the radial direction by about 10% and 8.8%, respectively. The measured damping factors from the envelope fitting had, on average, 15.9% higher values than those from the wavelet transform. It can be concluded from the results that the wavelet transform is more accurate for determining the damping factor, as it enables the decoupling of multi-degree of freedom systems if mode coupling is present.