Combination of the parametric and the wavelet analyses of acoustic emission (AE) signals was applied to identify the failure modes in carbon fiber reinforced plastic (CFRP) composite laminates during tensile testing. AE signals detected by surface mounted lead-zirconate-titanate (PZT) and polyvinylidene fluoride (PVDF) sensors were analyzed by parametric analysis based on the time of occurrence which classifies AE signals corresponding to failure modes. The frequency band level-energy analysis can distinguish the dominant frequency band for each failure mode. It was observed that the same type of failure mechanism produced signals with different characteristics depending on the stacking sequences and the type of sensors. This indicates that the proposed method can identify the failure modes of the signals if the stacking sequences and the sensors used are known.