Piezoelectric sensors are one of the primary devices used in smart structures because of their capability to act as both, sensors and actuators. A finite element model has been developed to predict elastic behavior and electrical response of laminate composites with embedded piezoelectric sensors. Correlations with experimental results indicate that the model is capable of forecasting the elastic and electrical response of the structure with good accuracy. The important issue of debonding of any of the faces of the sensors is also studied in the current work. Finite element results indicate significant changes in the elastic response caused by debonding, as well as unreliable electrical outputs.