When the structure identification algorithm was applied to practical engineering, the structure angle information was difficult to accurately measure and the degree of freedom of rotation was often neglected. The method of measuring dynamic signals with gyroscope sensor and the identification of structural physical parameters under the condition of incomplete output information were studied in this paper. Firstly, a commercial Micro Electro Mechanical Systems (MEMS) gyroscope sensor was proposed to measure the angular velocity and angle responses, and the theoretical formulas of structural physical parameters identification method based on the least square recursive method were deduced. Then, taking a four-story frame structure as an example for analysis, two working conditions that the rotation angle reconstructed by the generalized inverse method and the adoption of the true value of rotation angle were set up, and the physical parameters was identified. The correctness of the theoretical derivation was verified. The results of physical parameters identified under two working conditions were compared, which reflected that the effect of physical parameter identification was not very ideal when the angular response was reconstructed, so we can consider measuring the rotational responses. The dynamic accuracy of MEMS gyroscope sensor under impact vibration was verified by experiments firstly. The results demonstrated that the accuracy of dynamic angle measurement was 0.1° when the initial displacement of the structure was less than 10 mm. On this basis, the measured dynamic test data and analysis results of a three-story and two-span steel frame model verified that using MEMS gyroscope sensor to directly measure the rotational response was better than using reconstructed rotational response for the time domain identification of stiffness parameters for the bending-shear structure.