IFOS in collaboration with Auburn University demonstrated the feasibility of a Fiber Bragg Grating (FBG) integrated sensor system capable of providing real time in-situ defect detection, localization and quantification of damage. In addition, the system is capable of validating wind turbine blade structural models, using recent advances in non-contact, non-destructive dynamic testing of composite structures. This new generation method makes it possible to analyze wind turbine blades not only non-destructively, but also without physically contacting or implanting intrusive electrical elements and transducers into the structure. Phase I successfully demonstrated the feasibility of the technology with the construction of a 1.5 kHz sensor interrogator and preliminary instrumentation and testing of both composite material coupons and a wind turbine blade.