The development of health indicators (HI) of diagnostic and prognostic potential from generally uninformative raw sensor data is both a challenge and an essential feature for data-driven diagnostics and prognostics of composite structures. In this study, new damage-sensitive features, developed from strains acquired with Fiber Bragg Grating (FBG) and acoustic emission (AE) data, were investigated for their suitability as HIs. Two original fatigue test campaigns (constant and variable amplitude) were conducted on single-stringer composite panels using appropriate sensors. After an initial damage introduction in the form of either impact damage or artificial disbond, the panels were subjected to constant and variable amplitude compression–compression fatigue tests. Strain sensing using FBGs and AE was employed to monitor the damage growth, which was further verified by phased array ultrasound. Several FBGs were incorporated in special SMARTapesTM, which were bonded along the stiffener’s feet to measure the strain field, whereas the AE sensors were strategically placed on the panels’ skin to record the acoustic emission activity. HIs were developed from FBG and AE raw data with promising behaviors for health monitoring of composite structures during service. A correlation with actual damage was attempted by leveraging the measurements from a phased array camera at several time instances throughout the experiments. The developed HIs displayed highly monotonic behaviors while damage accumulated on the composite panel, with moderate prognosability.