Active sensing using ultrasonic guided waves (UGW) is widely investigated for monitoring possible damages in composite structures. Recently, a novel diagnosed film based on a circuit-printed technique with piezoelectric lead zirconate titanate (PZT) transducers has been developed. The diagnostic film is a replacement for the traditional cable connection to PZT sensors and has been shown to significantly reduce the weight of the host structure. In this work, the diagnosed films were embedded into composite structures during manufacturing using a novel edge cut-out method during lay-up, which allowed for edge trimming after curing. In this paper, the effect of fatigue loading on the integrity of PZT transducers is initially investigated. The electro-mechanical impedance (EMI) properties at different fatigue loading cycles were used as the diagnostic measure for the performance of the sensors. At the same time, the behaviours of UGW were investigated at different fatigue loading cycles. It was found that the EMI properties and active sensing behaviours remained stable up to 1 million cycles for the force ranges of 0.5~5 kN and 1~10 kN. Next, the effect of embedding the diagnosed film on the mechanical properties of the host composite structure was investigated. Tensile and compressive tests were conducted and the elastic modulus of composite coupons with and without embedded PZT diagnosed films were compared. The elastic modulus of composite coupons with PZT diagnosed films embedded across the entire coupon reduced by as much as 20% for tensile tests and just over 10% for compressive tests compared to the coupons without embedded sensors. These reductions are considered the worst-case scenario, as in real structures the film would only be embedded in a relatively small area of the structure.