This paper deals with damage detection using active Lamb waves. The wavelet transform and empirical mode decomposition methods are discussed for measuring the Lamb wave's arrival time of the group velocity. An experimental system to diagnose the damage in the composite plate is developed. A method to optimize this system is also given for practical applications of active Lamb waves, which involve optimal arrangement of the piezoelectric elements to produce single mode Lamb waves. In the paper, the single mode Lamb wave means that there exists no overlapping among different Lamb wave modes and the original Lamb wave signal with the boundary reflection signals. Based on this optimized PZT arrangement method, five damage localizations on different plates are completed and the results using wavelet transform and empirical mode decomposition methods are compared.