This paper focuses on the investigation of the diagnostic system for health monitoring and defects, detecting in composite structures using a piezoelectric sensor. A major overview of structural defects in composite materials that have an influence on product performance as well as material strength is presented. Particularly, the proposed diagnostic (health monitoring) system enables to monitor the composite material plate defects during the exploitation in real-time. The investigated health monitoring system can indicate the material structure defects when the periodic test input signal is provided to excite the plate. Especially, the diagnostic system is useful when the defect placement is hard to be identified. In this work, several various numerical and experimental studies were carried out. Particularly, during the first study, the piezoelectric transducer was used to produce mechanical excitation to the composite plate when the impact response is measured with another piezoelectric sensor. The second study focuses on the defect identification algorithms of the raw hologram data consisting of the recorded oscillation modes of the affected composite plate. The main paper results obtained in both studies enable us to determine whether the composite material is characterized by mechanical defects occurring during the response to the periodic excitation. In case of damage, the observed response amplitude was decreased by 70%. Finally, using the time-domain experimental results, the frequency response functions (FRFs) are applied to damage detection assessment and to obtain extra damage information.