Structural health monitoring (SHM) is essential for evaluating and ensuring the safety and reliability of structures by measuring their operating environment and responses. SHM encompasses different levels of analysis, including damage detection, localization, severity assessment, and remaining operational life estimation. Effective damage detection systems enhance performance and safety. Advanced SHM systems in aerospace engineering and civil engineering demonstrate significant maintenance cost reductions. Current inspection techniques include visual observations, ultrasonics, and modal analysis, utilizing sensors like optical fiber sensors and MEMS. SHM faces challenges such as meeting airborne requirements, developing large sensor networks, and mitigating environmental impacts on detection signals. This review provides a comprehensive overview of vibration-based damage detection methods, focusing on their physical mechanisms, commonly used indicators, and applications of active and passive monitoring methods. Each method has unique advantages and limitations, contributing to a holistic approach to SHM. The review concludes by highlighting future perspectives on vibration-based SHM techniques, emphasizing the need for advancements in sensor technology, signal processing, and integration of multiple monitoring approaches for enhanced accuracy and reliability.