Frequency domain solution of systems with frequency dependent damping is a computationally expensive endeavour especially when dealing with large order three-dimensional systems. A moment-matching based reduced order model is proposed in this work which is capable of handling nonlinear frequency dependent damping in second-order systems. In the proposed approach, local linear systems with frequency independent matrices are derived from the original system, and using the principles of the Rational Krylov approach, orthogonal basis vectors are computed from these local systems through the second-order Arnoldi procedure. The system is then projected on to the basis set to obtain a numerically efficient reduced order model, accurate in the entire frequency domain of interest. The proposed approach is also shown to be more accurate than the popular modal projection based multi-model approach of the same order. The proposed tool is applied to the problem of determining the frequency response of an idealised centrifugal compressor impeller with non-viscous (frequency dependent) damping. © 2019 Elsevier Inc.