This report discusses Nondestructive Evaluation (NDE) thrust area which supports initiatives that advance inspection science and technology. The goal of the NDE thrust area is to provide cutting-edge technologies that have promise of inspection tools three to five years in the future. In selecting projects, the thrust area anticipates the needs of existing and future Lawrence Livermore National Laboratory (LLNL) programs. NDE provides materials characterization inspections, finished parts, and complex objects to find flaws and fabrication defects and to determine their physical and chemical characteristics. NDE also encompasses process monitoring and control sensors and the monitoring of in-service damage. For concurrent engineering, NDE becomes a frontline technology and strongly impacts issues of certification and of life prediction and extension. In FY-92, in addition to supporting LLNL programs and the activities of nuclear weapons contractors, NDE has initiated several projects with government agencies and private industries to study aging infrastructures and to advance manufacturing processes. Examples of these projects are (1) the Aging Airplanes Inspection Program for the Federal Aviation Administration, (2) Signal Processing of Acoustic Signatures of Heart Valves for Shiley, Inc.; and (3) Turbine Blade Inspection for the Air Force, jointly with Southwest Research Institute and Garrett. In FY-92, the primary contributions of the NDE thrust area, described in this report were in fieldable chemical sensor systems, computed tomography, and laser generation and detection of ultrasonic energy.