In the current study, seismic cracking identification of concrete dams is conducted based on extended finite element method (XFEM) and Wavelet (WT) transform. First, the dam is numerically modeled and analyzed using the finite element method (FEM). Then cracking capability to the dam structure is added by applying the XFEM without introducing the initial crack, and the dam is analyzed under the seismic excitation. In fact, the whole dam structure is potentially under damage risk, and any zone reaching the fracture limit, begins to crack, which grows in the structure. This crack is usually unpredictable and is not easy to detect, therefore the structural modal parameters and their variation should be investigated based on structure response by using time-frequency transform. Results show that, investigating time-frequency window of the structure response and model parameters obtained from the numerical model, the history of physical changes occurred in the structure, cracking initiation time and damage localization is performed from comparing the intact and damaged vibration modes. Moreover, investigating the first natural modal indices of the intact and damaged structure, damage initiation and its location on Koyna dam height is easily detected, while for the second indices it is not performable.