This study performed an experimental investigation on pulsed thermography to detect internal defects, the major degradation phenomena in several structures of the secondary systems in nuclear power plants as well as industrial pipelines. The material losses due to wall thinning were simulated by drilling flat-bottomed holes (FBH) on the steel plate. FBH of different sizes in varying depths were considered to evaluate the detection capability of the proposed technique. A short and high energy light pulse was deposited on a sample surface, and an infrared camera was used to analyze the effect of the applied heat flux. The three most established signal processing techniques of thermography, namely thermal signal reconstruction (TSR), pulsed phase thermography (PPT), and principal component thermography (PCT), have been applied to raw thermal images. Then, the performance of each technique was evaluated concerning enhanced defect detectability and signal to noise ratio (SNR). The results revealed that TSR enhanced the defect detectability, detecting the maximum number of defects, PPT provided the highest SNR, especially for the deeper defects, and PCT provided the highest SNR for the shallower defects.