An inverse procedure for damage identification based on guided waves using the multiresolution finite wavelet domain method is presented. The forenamed method utilizes Daubechies wavelet and scaling functions for the approximation of state variables and as such, it involves two types of solutions, the coarse and the fine solutions. In that way, the multiresolution nature of the method can be utilized for efficient damage estimation in experimental applications since the fine solutions of the method have manifested remarkable localization capabilities and high sensitivity to damage. In order to fully take advantage of the additional functionalities of the multiresolution method, full-field displacement measurements of the guided wave propagation phenomenon are employed. Wavelet decomposition using Daubechies wavelets is now applied on the measurements in each different time step. The decomposition will lead to an approximation and a detail component that are directly comparable to the coarse and fine solution of the multiresolution simulation, respectively. Therefore, several multiresolution models can be created using the same Daubechies wavelets as the decomposition of the experimental data, so as to compare the simulation results with the measured ones. Numerical results evince that comparing the detail component of the experiments with the fine solution of the simulations, and their respective wavenumber spectra, using appropriate metrics can lead to efficient damage identification. In such manner, an optimization process can be conducted, utilizing the cross-correlation of both the structural responses and their wavenumber content for the definition of the objective function, in order to characterize the investigated damaged composite strip cases. This procedure can lead to more sensitive and accurate damage estimation due to the advantages of the multiresolution analysis.