Large welded structures, including ships and offshore structures, are normally in operation under cyclic fatigue loadings. These structures include many geometric discontinuities, as well as material discontinuities due to weld joints. The fatigue strength at these hot spots is very important for the structural performance. In the past, various Non Destructive Evaluation (NDE) techniques have been developed to detect fatigue cracks and to estimate their location and size. However, an important limitation of most of the existing NDE methods is that they are off line; the normal operation of the structure has to be interrupted, and the device often has to be disassembled. This study explores the development of a structural health monitoring system, with a special interest in applying the technique to welded structural members in ship and offshore structures. In particular, the impedance based structural health monitoring technique that employs the coupling effect of piezoceramic (PZT) materials and structures is investigated.