This article summarizes the latest development efforts on the Stanford multiactuator‐receiver transduction (SMART) Layer technology used for structural health monitoring (SHM) for various applications. The SMART Layer consists of a network of thin piezoelectric sensors and actuators that are embedded into a dielectric film through an electronic circuit printing and lamination technique. The SMART Layer provides a viable and cost‐effective means for monitoring the health of structures of various configurations and sizes. The SMART Layer is very versatile, and by coupling it with appropriate diagnostic software and hardware, the same layer can be developed into a passive SHM system or an active SHM system. The passive and active systems are specifically designed for detection of impacts on a structure; diagnosis of cracks in metallic structures and impact damage and debonds in composite structures. Recent advances in techniques for fabricating the SMART Layers, as well as methods for integrating the layers into structures, are illustrated and examples are presented. The mechanical and electrical properties of the layer are highlighted, including the effect of embedment of the layer on the integrity of composite structures. Other practical issues, such as the environmental effect on the performance of the layer and the self‐diagnostics of the embedded network, are also discussed.