Considering mass and stiffness of piezoelectric layers and damage effects of composite layers, nonlinear dynamic equations of damaged piezoelectric smart laminated plates are derived. The derivation is based on the Hamilton's principle, the higher-order shear deformation plate theory, von Karman type geometrically nonlinear strain-displacement relations, and the strain energy equivalence theory. A negative velocity feedback control algorithm coupling the direct and converse piezoelectric effects is used to realize the active control and damage detection with a closed control loop. Simply supported rectangular laminated plates with immovable edges are used in numerical computation. Influence of the piezoelectric layers' location on the vibration control is investigated. In addition, effects of the degree and location of damage on the sensor output voltage are discussed. A method for damage detection is introduced.