This paper presents a methodology to evaluate the damage in CLT walls by applying non-destructive vibration-based methods. The main contribution is that the methodology allows locating the damage and estimating the severity of damage in the different wall joints, going beyond the typical global damage detections. One of the relevant aspects was the novel combination of Operational Modal Analysis, Finite Element Model Updating, and Regional Sensitivity Analysis. The methodology was successfully applied to a 2-story CLT module built in the laboratory and instrumented with accelerometers. The wall was evaluated in 11 different damage scenarios induced by incremental pseudo-static lateral loads. The results obtained correlated reasonably well with the visually observed damage, so it is estimated that this methodology could be extended to more complex CLT wall configurations.