Dynamic model-updating methods are a useful tool for obtaining high-precision finite element (FE) models. However, when using such methods to update a model, there will be problems with incompleteness and mode switching. To overcome these problems, this paper proposes a structural dynamic model-updating with an automatic mode-identification method. In this method, a mode-identification index is established based on image-similarity recognition to identify the consistency between FE and experimental mode shapes, and particle swarm optimization is introduced to update the model. In addition, to reduce the computational time, Latin hypercube sampling is employed to perform probability statistics of the switching range of the concerned mode orders, and the orders of mode identification are reduced according to the statistics results. In this paper, the proposed method was validated by model-updating of a square plate. The natural frequencies and mode shapes of the plate were obtained by experimental modal analysis and used as the updating objectives of the FE model. In addition, the boundary condition of the plate was simplified by a series of springs, which were used as updating parameters along with material properties and dimensions. Finally, the FE model of the plate was updated by the present method, and the results indicate that the objective function error of the updated FE model was successfully reduced from 14.31% to 1.05%, which proves that the proposed model-updating method is effective and feasible.