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The study is concerned with the development of a new technique for the detection and location of nonlinearities in MDOF structural systems where multiple nonlinear components may exist due to different faulty conditions. The basis is a concept known as Nonlinear Output Frequency Response Functions and associated properties. The technique determines the location of nonlinear components in MDOF structural systems directly from the system input and output signals, which can be the measurements of sensors fitted into the system for structural health monitoring purpose. Simulation studies demonstrate the effectiveness of the proposed technique.