Hydroelectric power generation is an important non-fossil fuel power source to help meet the world’s energy needs. Fluid–structure interaction (FSI), in the form of mass loading and damping, governs the dynamic response of water turbines, such as Francis turbines. Although the effects of fluid mass loading are well documented, fluid damping is also a critical quantity that may limit vibration amplitudes during service, and therefore help to avoid premature failure of the turbines. However, fluid damping has received less attention in the literature. This paper presents an experimental investigation of damping due to FSI. Three hydrofoils were designed and built to investigate damping due to FSI. Piezoelectric actuation using macrofiber composites (MFCs) provided excitation to the hydrofoil test structure, independent of the flow conditions, to overcome the noisy environment. Natural frequency and damping estimates were experimentally obtained from sine sweep frequency response functions measured with a laser vibrometer through a window in the test section. The results indicate that, although the natural frequencies were not substantially affected by the flow, the damping ratios were observed to increase in a linear manner with respect to flow velocity.