This review examines the state‐of‐the‐art sensors and sensing technologies employed for structural health monitoring (SHM) in aerospace composites, highlighting the shift from conventional nondestructive evaluation techniques to real‐time monitoring systems. The review discusses the challenges associated with composite materials, such as their anisotropic nature and susceptibility to invisible damage, and how these challenges have driven the improvement of SHM techniques. Fiber‐optic sensors, including interferometric, distributed, and grating‐based sensors, are analyzed for their high sensitivity and multiplexing capabilities, making them suitable for distributed sensing applications. Piezoelectric sensors are evaluated for their effectiveness in both active and passive damage detection methods. At the same time, piezoresistive self‐sensing systems are explored for their potential to integrate sensing directly into composite materials. The review also addresses the challenges encountered in implementing SHM systems. It suggests solutions like protective coatings, advanced data processing algorithms, and modular system design to overcome these challenges. In conclusion, this review provides a comprehensive overview of the current SHM technologies for aerospace composites, underscoring the need for sustained research and development to improve sensor technology, expand data processing capabilities, and ensure seamless integration with aircraft systems, thus contributing to the safety and efficiency of aerospace operations.