Intelligent structures with integrated control systems consisting of large numbers of distributed sensors, actuators, and processors have been proposed for the precision control of structures. This report examines the feasibility of physically embedding the electronic components of such systems. The hardware implications of functionality distribution are addressed, and it is shown that highly distributed systems can have substantially fewer communications lines and faster control loop speeds than conventional approaches, at the cost of embedding electronic circuit chips. A technique for the embedding procedure is presented which addresses electrical, mechanical, and chemical compatibility issues. Test specimens with functioning integrated circuits successfully embedded within graphite/epoxy composite laminates were subjected to static and cyclic mechanical loads, demonstrating nominal electrical function above normal design load limits. Operation of test specimens in a high temperature/humidity environement allowed the identification of a corrosive failure mode of the leads or lead-chip bonds. The application of a single-chip microcomputer to the control of a structural vibration problem demonstrates the potential for the development of monolithic integrated circuit devices capable of performing distributed processing tasks required for fully integrated intelligent structures.