A study that evaluated the use of ultrasonic-guided waves to detect water in hollow pipes is presented. In this work, a guided wave system employed a 40 kHz piezoelectric (PZT) transmitter and a PZT ultrasound transducer. The transmitter was based on a battery-operated microcontroller, and the receiver was composed of a digital signal processor (DSP) module connected to a PC via a USB for monitoring purposes. The transmitter and receiver were attached, non-intrusively without perfect alignment, to the external wall of a steel tube 1 m × 270 mm × 2 mm in size. Flood detection was performed based on guided wave attenuation due to energy leakage from the internal steel wall of the tube to water. Two approaches were carried out. The former was an off-line signal response based on the wavelet energy entropy analysis of a received pulse; the latter was a real-time hit-and-miss analysis centered on measuring the time–space in-between two transmitted pulses. Experiments performed in the laboratory successfully identified flooded tubes.