This paper examines the mechanics of delamination, ply variation, and the fabrication on the sensing ability for magnetostrictive particles embedded in a carbon fiber reinforced polymer laminate. An analytical method is used to determine how delamination and ply variation affect the mechanical state and magnetic properties of the embedded terfenol-d particles. Numerical models are also used to simulate the effect of delamination and ply variation on the mechanical state. For the analytical method, the mechanical properties observed are the net strain and stress in a local particle section resulting from magnetostriction. A one dimensional load line equation and material property data are used to obtain approximate solutions. The magnitudes of the stress and magnetostriction drop in the laminates are observed. Based on the local mechanical and magnetic state, the magnetic permeability can be selected from experimental data. The analytical method reveals that the effect of a delamination is to reduce the resistance to particle actuation in a local area, which allows for variation in stress and magnetostriction magnitudes in damaged areas vs. nondamaged areas. This variation in the mechanical state subsequently affects the magnetic permeability, which changes the reluctance in the local particle layer. These results are compared to a numerical model of terfenol-d embedded in carbon fiber reinforced polymer laminate, which reveal a drop in stress and increase in magnetostriction in the delamination region. Finally, these results are projected to experimental results from health monitoring scans of carbon fiber reinforced polymer laminates with varied ply count and a delamination.