Local wall thinning in pipelines affects the structural integrity of industries like nuclear power plants (NPPs). In the present study, a pulsed eddy current (PEC) differential probe with two excitation coils and two Hall-sensors was fabricated to measure the wall thinning in insulated pipelines. A stainless steel test sample was prepared with a thickness that varied from 1 mm to 5 mm and was laminated by plastic insulation to simulate the pipelines in NPPs. The excitation coils in the probe were driven by a rectangular current pulse, the difference of signals from two Hall-sensors was measured as the resultant PEC signal. The peak value of the detected signal is used to describe the wall thinning. The peak value increased as the thickness of the test sample increased. The results were measured at different insulation thicknesses on the sample. Results show that the differential PEC probe has the potential to detect wall thinning in an insulated NPP pipelines.