The objective of this research is to develop the impact monitoring techniques providing impact identification and damage diagnostics of smart composite laminates susceptible to impacts. This can be implemented simultaneously by using the acoustic waves by the impact loads and the acoustic emission waves from damage. In the previous research, we have discussed the impact location detection process in which impact generated acoustic waves are detected by PZT using the improved neural network paradigm. This paper describes the implementation of time-frequency analysis such as the Short-Time Fourier Transform (STFT) and the Wavelet Transform (WT) on the determination of the occurrence and the estimation of damage.