Constrained identification of state-space models representing structural dynamic systems is addressed. Based on physical insight, transfer function constraints are formulated in terms of the state-space parametrization. A simple example shows that a method tailored for this application, which utilizes the non-uniqueness of a state-space model, outperforms the classic sequential quadratic programming method in terms of robustness and convergence properties. The method is also successfully applied to real experimental data of a plane frame structure. (C) 2006 Elsevier Ltd. All rights reserved.