Advanced composite structures are commonly tested under controlled loading. Understanding the initiation and progression of composite damage under load is critical for validating design concepts and structural analysis tools. Thermal nondestructive evaluation (NDE) is used to detect and characterize damage in composite structures during fatigue loading. A difference image processing algorithm is demonstrated to enhance damage detection and characterization by removing thermal variations not associated with defects. In addition, a one-dimensional multilayered thermal model is used to characterize damage. Lastly, the thermography results are compared to other inspections such as non-immersion ultrasonic inspections and computed tomography X-ray.