Dispersive propagation and overlapping wave modes are two main obstacles for guided Lamb wave SHM applications. In an effort to overcome such obstacles, a new signal-processing technique taking advantage order tracking based on dispersion relation, is developed. In this approach, by referencing the wave number-frequency function of specified mode, the operations of resampling and interpolating are performed on the frequency-spectral series of raw signal. The orders referenced to wave number-frequency are calculated, according to which the individual wave-packet is identified and its corresponding propagating distance is estimated. In the order domain, the overlapping modes are readily separated by Gabor expansion on the frequency-spectral series of raw signal. Numerical and FEM simulations on strongly dispersive and multimode overlapping guided waves were carried out to evaluate the performance of the proposed approach. The results demonstrated that the proposed approach is effective in dispersion analysis, mode differentiation and overlapped wave-packets separation. techniques were applied including Wiener pulse shaping filter, two-sided Wiener filter, weighted least squares filter, Mendel's minimum variance deconvolution algorithm, Oldenburg's frequency domain deconvolution algorithm and L1-norm deconvolution [11,12]. Since the deconvolution methods were very sensitive to noises, they generally could be inapplicable if strong noise were present in the sensor signal. Furthermore, even with high time resolution, the method of pinpointing wave-packet arrival time maybe loses its effectiveness. That is because Lamb waves are inherently dispersive, i.e., different frequency components propagate at different speeds in a wave-packet, which cause wave-packets to spread out in space and time when they propagate through a structure so as to make the concept of arrival time ill-defined in time domain. To obtain well-defined onset-time of echoes, Chirplets based dispersion curve were employed to extract the onset-time of that single mode from multimode dispersive wave signal [13,14]. However, in the case of coherent interferences (false reflection) in the waveform, the Chirplet method may produce misleading results. To eliminate interference of false reflections, Ajay et al. [15] adopted an algorithm based on correlation analysis and matching pursuit method to estimate onset-time of echoes. But this method still has a deficiency in that the wave propagation model and baseline signal must be known.In an effort to overcome the difficulty of wave-packet identification caused by strong dispersion, researchers developed some signal-processing techniques to compensate for the dispersive nature of Lamb waves in long-range inspections. The time reversal technique and its improved methods [16][17][18][19] are used to achieve temporal recompression of Lamb waves under broadband signal excitation. Warped frequency transform [20] upwarps the dispersive signal, and then wraps TF points of the STFT of the signal to obtain a dispersion-m...