A hybrid method, combining analytical formulation with numerical computation, is developed for estimating the modal damping in a sag cable with oil damper. The sag cable is such divided into a series of segments that the damper is located at a joint between two segments. An orthogonal transformation is performed to decouple the equations of motion and find local analytical solutions for each segment. Then, a transfer matrix procedure is employed to assemble these local solutions to form a system matrix. From the system matrix and the boundary conditions of the cable, the complex eigenvalues including the modal damping of the cable are finally numerically estimated. Using the hybrid method, an extensive parametric study is carried out to investigate the modal damping of the system with respect to cable sag, cable internal damping, damper direction, damper stiffness, and others. The results show that for a taut cable, the obtained curves for the modal damping are very much compatible with the previous results, but much less computation effort is required. It is also shown that the disparity of modal damping between the previous theoretical values and experimental results may be attributed to the ignorance of the frequency crossover of a sag cable, damper stiffness, or damper direction.