The paper demonstrates the potential of wavelet transform in a discrete form for structural damage localization. The efficiency of the method is tested through a series of numerical examples, where the real flat truss girder is simulated by a parameterized finite element model. The welded joints are introduced into the girder and classic code loads are applied. The static vertical deflections and rotation angles of steel truss structure are taken into consideration, structural response signals are computed at discrete points uniformly distributed along the upper or lower chord. Signal decomposition is performed according to the Mallat pyramid algorithm. The performed analyses proved that the application of DWT to decompose structural response signals is very effective in determining the location of the defect. Evident disturbances of the transformed signals, including high peaks, are expected as an indicator of the defect existence in the structure. The authors succeeded for the first time in the detection of breaking the weld in the truss node as well as proved that the defect can be located in the diagonals.