The Continuous Scanning Laser Doppler Vibrometry (CSLDV) technique has been developed for vibration measurement in recent years. A Scanning LDV is used as a velocity transducer in which a laser beam can be continuously scanned over a structure which is vibrating sinusoidally at any frequency so that the measured LDV output signal can be quickly post-processed to obtain the Operating Deflection Shape (ODS) of the structure. The possibility of structural damage detection, localization, and severity assessment using ODS looks likely to the more attractive than when using traditional measurement techniques which address only a small number of discrete points. This paper presents a study of the effect of excitation location on structural damage detection using the CSLDV technique and the simulation of test cases are used for demonstration. The test piece, a square plate, was modelled using FEM and several test cases were produced, each one identified by the damage depth, varying in the range between 10% and 90%, and its locations. The first 20 modes of the damaged test case as well as of undamaged structure were calculated and for each test case the ODSs were simulated using the eigenvectors previously calculated, sweeping the vibration frequency and the position of the excitation point. From each pair of ODSs, undamaged and damaged, the Mean Square Error (MSE) was produced. The results of all simulations showed that the damaged structure is sensitive to the excitation point and to the higher frequency ODSs. Using the ODS technique and selecting the optimum excitation location for ODS measurements provide a feasible method of structural damage detection and localization.