In aircraft composite structures, structural defects such as matrix cracks, delaminations and fiber breakages are hard to detect if they are breaking out in operating condition. Therefore, to assure the structural integrity, it is desirable to perform the real-time health monitoring of the structures. In this study, a fiber optic sensor was applied to the composite beams to monitor failure and strain in real-time. To detect the failure signal and strain simultaneously, laser diode and ASE broadband source were applied in a single EFPI sensor using wavelength division multiplexer. Short time courier transform and wavelet transform were used to characterize the failure signal and to determine the moment of failure. And the strain measured by AEFPI was compared with the that of strain gage. From the result of the tensile test, strain measured by the AEFPI agreed with the value of electric strain gage and the failure detection system could detect the moment of failure with high sensitivity to recognize the onset of micro-crack failure signal.