Distributed Sensor Networks (DSN) has emerged as a sensing paradigms in the structural engineering field due to the application of Structural Health Monitoring (SHM) for large-scale structures which results in accurately diagnosing the health of structures and enhancing the reliability and robustness of monitoring systems. The multisensor network greatly enhances the feasibility of applying SHM and also provides awareness of structural damage. In this work, we develop data-driven method for the diagnosis of damage in mechanical structures using an array of distributed sensors. The proposed approach relies on comparing intrinsic geometry of data sets corresponding to the undamage and damage state of the system. This approach assumes no knowledge of underlying models of the different data sources. We use spectral diffusion map approach for identifying the intrinsic geometry of the data set. In particular, time series data from distributed sensors is used for the construction of diffusion map. The low dimensional embedding of the data set corresponding to different damage level is done using singular value decomposition of the diffusion map to identify the intrinsic geometry. We construct appropriate metric in diffusion space to compare the low-dimensional data set corresponding to different damage cases. The developed algorithm is applied for damage diagnosis of wind turbine blades. Towards this goal we developed a detailed nite element-based model of CX-100 blade in ANSYS using shell elements. The damage in the blade is modeled by degrading the material property which in turn results in change of stiffness. One of the main challenges in the development of health monitoring algorithms is the ability to use sensor data with relatively small signal to noise ratio. Our developed diffusion map-based algorithm is shown to be robust to the presence of sensor noise. The proposed diffusion map-based algorithm can not only account for data from different sensors but also different types of sensor in the form of sensor fusion hereby making it attractive to exploit the distributed nature of sensor array. The distributed nature of sensor array is further exploited to determine the location of damage on the wind turbine blade. Our extensive simulation results show that our proposed algorithms can not only determine the extend of damage but also the location of the damage.