Composite engine fan blades are critical aircraft engine components, and their failure can compromise the safe and reliable operation of the entire aircraft. To enhance aircraft availability and safety within a condition-based maintenance framework, effective methods are needed to identify damage and monitor the blades’ condition throughout manufacturing and operation. This paper presents a unique experimental framework for real-time monitoring of composite engine blades utilizing state-of-the-art structural health monitoring (SHM) technologies, discussing the associated benefits and challenges. A case study is conducted on a representative Foreign Object Damage (FOD) panel, a substructure of a LEAP (Leading Edge Aviation Propulsion) engine fan blade, which is a curved, 3D-woven Carbon Fiber Reinforced Polymer (CFRP) panel with a secondary bonded steel leading edge. The loading scheme involves incrementally increasing, cyclic 4-point bending (loading–unloading) to induce controlled damage growth, simulating in-operation conditions and allowing evaluation of flexural properties before and after degradation. External damage, simulating foreign object impact common during flight, is introduced using a drop tower apparatus either before or during testing. The panel’s condition is monitored in-situ and in real time by two types of SHM sensors: screen-printed piezoelectric sensors for guided ultrasonic wave propagation studies and surface-bonded Fiber Bragg Grating (FBG) strain sensors. Experiments are conducted until panel collapse, and degradation is quantified by the reduction in initial stiffness, derived from the experimental load-displacement curves. This paper aims to demonstrate this unique experimental setup and the resulting SHM data, highlighting both the potential and challenges of this SHM framework for monitoring complex composite structures, while an attempt is made at correlating SHM data with structural degradation.