In　the　purpose　of　achieving　composite　structure　damage　identification　and　localization　of　structural　health　monitoring,　a　denoising　algorithm　of　redundant　second-generation　wavelet　transform　considering　neighboring　coefficients　is　selected　as　the　best　solution　from　18　denoising　schemes　performed　in　this　paper.　Through　introducing　fractal　dimension　as　a　damage-sensitive　feature　and　adopting　the　probabilistic　reconstruction　algorithm,　the　damage　status　on　the　composite　panel　could　be　identified　and　located　as　tomography　maps.　The　practicability　of　the　presented　approach　is　validated　in　the　experiment　operating　in　the　composite　damage　monitoring　system.