An innovative smart shape memory alloy (SMA) -based damper/displacement transducer, which had comprehensive energy dissipation and strain self-sensing abilities (i.e. electric resistance vs. applied strain relationship) simultaneously, was proposed in this paper. This smart SMA-based damper/displacement transducer had three characteristics: 1) SMA wires in the damper/transducer were always elongated during the entire excitation; 2) SMA wires dissipated energy with re-centering ability due to pseudoelasticity; 3) SMA damper/transducer could simultaneously play the role of displacement transducer due to the strain self-sensing property of SMA wires in the damper. Such smart SMA-based damper/displacement transducer, incorporated into a building or a bridge, provided the potential to rapidly assess post-earthquake safety of structures. A large number of tests were conducted firstly, on the hysteresis stress-strain-electric resistance relationship of NiTi SMA wires (diameter 1.2mm). These tests were carried out under sinusoidal excitations with different loading frequencies at room temperature. The experimental results indicated that the pseudoelastic hysteresis loops of the SMA wires were dependent on loading frequency. In addition, the sensitivity coefficient of electric resistance vs. applied strain of the NiTi wires was identified to be 6.466 from the test results, which was independent of the loading frequency. Finally, shake table tests for a scaled 5-story steel frame, with the said smart SMA dampers/displacement transducers at the first story, subjected to various earthquake excitations, were conducted. The results of the shake table tests indicated that not only could the smart SMA damper/displacement transducers suppress structural seismic response effectively, but also it could monitor structural interstory drifts accurately.