In this paper, an in situ piezoelectric-fiber hybrid sensor network was developed to monitor the life-cycle of carbon fiber-reinforced plastics (CFRPs), from the manufacturing phase to the life in service. The piezoelectric lead-zirconate titanate (PZT) sensors were inserted inside the composite structures during the manufacturing process to monitor important curing parameters, including the storage modulus of resin and the progress of the reaction (POR). The strain that is related to the storage modulus and the state of resin was measured by embedded fiber Bragg grating (FBG) sensors, and the gelation moment identified by the FBG sensors was very close to those determined by dynamic mechanical analysis (DMA) and POR. After curing, experiments were conducted on the fabricated CFRP specimen to investigate the damage identification capability of the embedded piezoelectric sensor network. Furthermore, a modified probability diagnostic imaging (PDI) algorithm with a dynamically adaptive shape factor and fusion frequency was proposed to indicate the damage location in the tested sample and to greatly improve the position precision. The experimental results demonstrated that the average relative distance error (RDE) of the modified PDI method was 68.48% and 46.97% lower than those of the conventional PDI method and the PDI method, respectively, with an averaged shape factor and fusion frequency, indicating the effectiveness and applicability of the proposed damage imaging method. It is obvious that the whole life-cycle of CFRPs can be effectively monitored by the piezoelectric-fiber hybrid sensor network.