Nonlinear acoustic technique has been recently introduced as a new tool for nondestructive inspection and evaluation of fatigued, defective, and fractured materials. Various defects such as cracks, debonding, fatigue, etc. lead to anomalous high level of nonlinearity as compared with flawless structures. One of the acoustic manifestations of such nonlinearity is the modulation of ultrasound by low frequency vibration. Two methods employing the nonlinear interaction of ultrasound and vibration were developed, namely vibro-modulation (VM) and impact-modulation (IM) methods. VM method employs forced harmonic vibration of a structure tested, while IM method uses impact excitation of structure natural modes of vibration. The feasibility tests were carried out for different objects and demonstrated high sensitivity of the methods for detection of cracks in steel pipes and pins, bonding quality in titanium and thermoplastic plates used for airspace applications, cracks in combustion engine, adhesion flaws in bonded composite structures, and cracks and corrosion in reinforced concrete. The model of the crack allowing to describe the modulation of sound by vibration is discussed. The developed nonlinear technique demonstrated certain advantages as compared with the conventional linear acoustic technique, specifically discrimination capabilities, sensitivity, and applicability to highly inhomogeneous structures.