To improve the safety and economy of aircraft pallet use, an aircraft pallet damage monitoring method based on damage subarea identification and probability-based diagnostic imaging is proposed. In the proposed method, first, the large aircraft pallet monitoring area is divided into rectangular subareas, and a piezoelectric transducer sensor is pasted on each vertex of the rectangular subarea that is used to excitation and sensing the Lamb wave. Second, the damage subarea is identified according to the diagonal damage indexes. Third, the damage position in the damage subarea is calculated using the probability-based diagnostic imaging method and coordinate probability weighted algorithm. Finally, the aircraft pallet damage can be localized based on the damage subarea position. Frequency selection and damage simulation study results show that the Lamb wave is sensitive to aircraft pallet damage whose centre frequency ranges from 50 kHz to 150 kHz, and the damage index of a steel ball is less than that of all real aircraft pallet damage from 95 kHz to 125 kHz. The verification results show that the proposed method can locate aircraft pallet damage with an error of less than 2 cm.