The paper presents results of experimental investigations on damage detection using guided wave propagation technique. The tested specimen was a steel plate with a defect in the form of a rectangular notch. Lamb waves were excited by a PZT actuator and sensed by a laser vibrometer. Since reflections from damage in registered signals are often masked by measurement noise, for identification of time of reflections from damage, continuous wavelet transform (CWT) was used. Obtained results indicated that application of wavelet signal processing enabled precise reconstruction of reflected wavefront from damage.