Steam turbine blades are the important components in power system shaft lines subjected to severe temperatures, leading to low/high cycle fatigue failures. The transient conditions occurring during startup and shutdown events generate alternative stresses causing the fracture at the blade roots. The present work deals with the effect of localized damage on the vibration characteristics and damage identification study in the last stage low-pressure (LP) steam turbine blade. Initially, free vibration studies and transient analysis of the last row LP blade section are conducted using the finite element model. A crack near the root region is modeled by a torsional spring, whose stiffness is expressed in terms of crack depth ratio. Effects of crack depth ratio and location near the roots on the natural frequencies and transient response amplitudes are studied in detail. The relationship between the damage parameters and blade frequencies is established through the backpropagation neural network model.