Though damage identification using guided waves generated using ultrasonics is well proven, its usage for structural health monitoring poses difficulties. Piezo electric actuation and sensing overcomes this difficulty to some extent. In this work, usage of such guided waves for damage identification is investigated. Piezo electric wafer transducers are used for generating and sensing the guided waves. Presence of multiple modes and comparatively higher speeds of the guided waves throw up difficulties in damage identification. It is shown here that this problem can be addressed by considering different sensor location with respect to the damage with suitable interpretation of the results. Usage of fundamental antisymmetric (Ao) mode is found to be more suitable in localizing the damage compared to the fundamental symmetric (So) mode. Asymmetrically located damage causes mode conversion. It is demonstrated in this work that the mode converted guided wave (So) could be advantageously used for identification, localization, and quantification of the damage. Damage identification and localization schemes are evolved based on the location of the sensors with respect to the damage. It is shown that the reduction in the magnitude of the mode converted wave can be utilized for assessing the depth of the damage. 3D finite element based numerical models incorporating a PZT sensor are developed and validated with experimental results in terms of the characteristics of the waves, mode conversion due to damage and influence of the defect size on the received signals which are necessary for quantification of the damage.