This paper presents a study on the identification of progressive damage, using an equivalent linear finite-element model updating strategy, in a masonry infilled RC frame that was tested on a shake table. A two-thirds-scale, 3-story, 2-bay, infilled RC frame was tested on the UCSD-NEES shake table to investigate the seismic performance of this type of construction. The shake table tests induced damage in the structure progressively through scaled historical earthquake records of increasing intensity. Between the earthquake tests and at various levels of damage, low-amplitude white-noise base excitations were applied to the infilled RC frame. In this study, the effective modal parameters of the damaged structure have been identified from the white-noise test data with the assumption that it responded in a quasi-linear manner. Modal identification has been performed using a deterministic-stochastic subspace identification method based on the measured input-output data. A sensitivity-based finite-element model updating strategy has been employed to detect, locate, and quantify damage (as a loss of effective local stiffness) based on the changes in the identified effective modal parameters. The results indicate that the method can reliably identify the location and severity of damage observed in the tests.