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This paper aims to introduce topology optimization as a robust tool for damage detection in plane stress structures. Two objective functions based on natural frequencies and shape modes of the structure are defined to minimize discrepancy between dynamic specifications of the real damaged structure and the updating model. Damage area is assumed as a porous material where amount of porosity signifies the damage intensity. To achieve this, Solid Isotropic Material with Penalization (SIMP) model is employed. Sensitivity analysis is achieved and a mathematical based method is used for solving the optimization problems. In order to demonstrate efficiency and robustness of the method to identify various type of damages in terms of both location and intensity, several numerical examples are presented and the results are discussed.