The goal of this research is to couple a physics-based model with adaptive algorithms to develop a more accurate and robust technique for structural health monitoring (SHM) in composite structures. The purpose of SHM is to localize and detect damage in structures, which has broad applications to improvements in aerospace technology. This technique employs PZT transducers to actuate and collect guided Lamb wave signals. Matching pursuit decomposition (MPD) is used to decompose the signal into a cross-term free time-frequency relation. This decoupling of time and frequency facilitates the calculation of a signal's time-of-flight along a path between an actuator and sensor. Using the time-of-flights, comparisons can be made between similar composite structures to find damaged regions by examining differences in the time of flight for each path between PZTs, with respect to direction. Relatively large differences in time-of-flight indicate the presence of new or more significant damage, which can be verified using a physics-based approach. Wave propagation modeling is used to implement a physics based approach to this method, which is coupled with adaptive algorithms that take into account currently existing damage to a composite structure. Previous SHM techniques for composite structures rely on the assumption that the composite is initially free of all damage on both a macro and micro-scale, which is never the case due to the inherent introduction of material defects in its fabrication. This method provides a novel technique for investigating the presence and nature of damage in composite structures. Further investigation into the technique can be done by testing structures with different sizes of damage and investigating the effects of different operating temperatures on this SHM system.