The computational and wireless communication capabilities of smart sensors densely distributed over structures can provide rich information for structural monitoring. While smart sensor technology has seen substantial advances during recent years, interdisciplinary efforts to address issues in sensors, networks, and application specific algorithms are needed to realize their potential. This paper first discusses each of these issues, and then reports on research that combines the results to develop a structural health monitoring (SHM) system suitable for implementation on a network of smart sensors. Experimental verification is provided using Intel's Imote2 smart sensors installed on a three-dimensional truss structure. The Imote2 is employed herein because it has the high computational and wireless communication performance required for advanced SHM applications. This SHM system is then investigated from sensing, network, and SHM algorithm perspectives.