Advanced signal processing techniques have been long introduced and widely used in structural health monitoring (SHM) and nondestructive evaluation (NDE). In our research, we applied several signal processing approaches for our embedded ultrasonic structural radar (EUSR) system to obtain improved damage detection results. The EUSR algorithm was developed to detect defects within a large area of a thin-plate specimen using a piezoelectric wafer active sensor (PWAS) array. In the EUSR, the discrete wavelet transform (DWT) was first applied for signal de-noising. Secondly, after constructing the EUSR data, the short-time Fourier transform (STFT) and continuous wavelet transform (CWT) were used for the time-frequency analysis. Then the results were compared thereafter. We eventually chose continuous wavelet transform to filter out from the original signal the component with the excitation signal's frequency. Third, cross correlation method and Hilbert transform were applied to A-scan signals to extract the time of flight (TOF) of the wave packets from the crack. Finally, the Hilbert transform was again applied to the EUSR data to extract the envelopes for final inspection result visualization. The EUSR system was implemented in LabVIEW. Several laboratory experiments have been conducted and have verified that, with the advanced signal processing approaches, the EUSR has enhanced damage detection ability.