The Acoustic Emission (AE) technique has been described as possessing ‘many of the qualities of an ideal damage-monitoring technique’, and the technique has been used successfully in recent years to aid understanding of failure mechanisms and damage accumulation in bone cement during de-bonding of the cement-metal interface fatigue loading, pre-load cracking during polymerisation and to describe and locate damage within an entire stem construct. However, most investigations to date have been restricted to in-vitro testing using surface mounted sensors. Since acoustic signals are attenuated as they travel through a material and across interfaces, it is arguable that mounting the sensors on the bone surface to investigate damage mechanisms occurring within the bone cement layer is not ideal. However, since direct access to the bone cement layer is not readily available, the bone surface is often the only practical option for sensor positioning. This study has investigated the potential for directly embedding AE sensors within the femoral stem itself. This enables a permanent bond between the sensor and structure of interest, allows closer proximity of the sensor to the region of interest, and eliminates potential complications and variability associated with fixing the sensor to the sample. Data is collected during in-vitro testing of nominal implanted constructs, and information from both embedded and externally mounted AE sensors are compared and corroborated by microComputed Tomography (micro-CT) images taken both before and after testing. The use of multiple AE sensors permitted the location as well as the chronology of damage events to be obtained in real time and analysed without the need for test interruption or serial sectioning of the test samples. Parametric analysis of the AE signal characteristics enabled those events likely to be associated with cracking as opposed to interfacial rubbing or de-bonding to be differentiated and it was shown that the embedded sensors gave a closer corroboration to observed damage using micro-CT and were less affected by unwanted sources of noise. The results of this study have significant implications for the use of AE in assessing the state of total hip replacement (THR) constructs both in-vitro and potentially in-vivo. Incorporating the sensors into the femoral stem during in-vitro testing allows for greater repeatability between tests since the sensors themselves do not need to be removed and re-attached to the specimen. To date, all in-vivo studies attempting to use the AE technique to monitor the condition of any replacement arthroplasty device have used externally mounted sensors and suffered from the attenuation of acoustic information through flesh and skin. It is hypothesised that the use of directly embedded AE sensors may provide the first steps towards an in-vivo, cost effective, user friendly, non-destructive system capable of continuously monitoring the condition of the implanted construct and locating the earliest incidences of damage initiation.