In this paper, delamination detection of composite beams is investigated through a transient wave analysis method. A higher-order beam theory is proposed to model the Lamb wave propagation behavior. Wavelet Transform (WT) is used to localized the delamination. The reflection ratios and transmission ratios are found to depend strongly on the frequency of the incident flexural waves, as well as the size of the delamination. So it can be well used to detect the small size of the delamination, which is important for the Structural Health Monitoring (SHM). The numerical results show that the localization and identification of the size of the delamination are feasible by the proposed approach, which is the essential first step for the enhancement of safety and reliability of composite structures. The results are being verified by the experiments