A complex fluid-structure interaction can often create nonlinear dynamic behaviour in the structure. This can be better estimated using nonlinear modal analysis, capable of identifying and quantifying the nonlinearity in the structure. In this study, the case of a vibrating beam submerged in liquid using a nonlinear parameter identification method is presented. This system is considered as an alternative propulsion mechanism, hence understanding the interaction between the fluid and the structure is necessary for its control. Here, impulse signals are used to characterise the numerical and experimental dynamics response of the system. Since the transient responses contain of a multi-component vibratory signals, a vibration decomposition method is used to separate the time response signals based on the dominant amplitude in the frequency response function. The separated time-series signals are then fitted to the nonlinear identification method to construct the backbone and damping curves. The modal parameters obtained from experimental data are then used as a base for the development of the analytical models. The analytical approaches are based on the Euler-Bernoulli beam theory with additional mass and quadratic damping functions to account for the presence of the fluid. Validations are carried out by comparing the dynamic responses of the analytical and experimental measurements demonstrating the accuracy of the model and hence, its suitability for control purposes.