In recent decades, the I-beam has become one of the most important engineering structural components being applied in areas such as mechanical, civil, and constructional engineering. To ensure safety and proper maintenance, an effective and accurate structural health monitoring method/system for I-beams is urgently needed. This paper proposes a smart sensing system for I-beam crack detection that is based on the energy diffusivity (attenuation) between two individual piezoelectric transducers (PZTs). Sensor (one of the PZTs) responses are analyzed and applied to characterize the health status of the I-beam. Lab experiments are carried out for effective evaluation of this approach in structural health monitoring. The characteristics of crack distribution are studied by calculating and analyzing the energy diffusivity variation of the sensor responses to artificially cuttings to the I-beam. Moreover, instead of utilizing an actuator and a sensor, the system employs a couple of PZTs sensors, which offer the potential for in-field, in situ sensing with the sensor arrays. This smart sensing system can be applied in railway, metro, and iron-steel structures for I-beam health monitoring applications.