Many types of rotating components commonly operate above the first or second critical speed and they are subjected to run-ups and shutdowns frequently. The present study focuses on developing FRF of rotor bearing systems for damping estimation from swept-sine excitation. The principle of active vibration control states that with increase in angular acceleration, the amplitude of vibration due to unbalance will reduce and the FRF envelope will shift towards the right (or higher frequency). The frequency response function (FRF) estimated by tracking filters or Co-Quad analyzers was proved to induce an error into the FRF estimate. Using Fast Fourier Transform (FFT) algorithm and stationary wavelet transform (SWT) decomposition FRF distortion can be reduced. To obtain a theoretical clarity, the shifting of FRF envelope phenomenon is incorporated into conventional FRF expressions and validation is performed with the FRF estimated using the Fourier Transform approach. The half-power bandwidth method is employed to extract damping ratios from the FRF estimates. While deriving half-power points for both types of responses (acceleration and displacement), damping ratio (ζ) is estimated with different approximations like classical definition (neglecting damping ratio of order higher than 2), third order (neglecting damping ratios with order higher than 4) and exact (no assumptions on damping ratio). The use of stationary wavelet transform to denoise the noise corrupted FRF data is explained. Finally, experiments are performed on a test rotor excited with different sweep rates to estimate the damping ratio. © 2013 Elsevier Ltd.