The current research attempts to explore the feasible use of a Structural Health Monitoring method for a two-way slab system through the effective vibration based damage diagnostic technique of Random Decrement (RD). Experimental investigations have been conducted on a total of four reinforced concrete two-way slab specimens. The slabs behaviour was examined under static loading. The results were presented in terms of load-deflection relationship at service and ultimate load, crack pattern and failure modes. At each stage of loading, the ambient vibration excitation test has been performed to investigate the extent of damage at the cracking, yield, and ultimate states through changes in dynamic parameters obtained from RD signatures. Additional applications of RD technique were performed on two-way slabs, first, to explore the location of damage by Multi-Channel Random Decrement using FBG sensor arrays. Secondly, RD technique was utilized to evaluate the extent of damage under successive equal dynamic impacts.