This document explains the design of the Acoustic Emission Detection and Characterization System (AEDCS). The AEDCS is capable of recording several Acoustic Emmision ( E) characteristics including AE event peak amplitude, duration, frequency, and time of occurrence. The analog and digital circuits designed to implement these functions are monitored and controlled by a microprocessor system. The microprocessor system processes and records the AE event information, and passes it to a host computer for mass storage and further manipulation. The AEDCS is the first low cost, self-contained device that records these AE characteristics in real time. The AEDCS is designed to be used in the AE testing of materials. It is well-suited for non-destructive applications that produce a relatively low AE count rate, such as AE monitoring of wooden structures. The AEDCS is also capable of recording AE event characteristics in destructive test applications. The results of using the AEDCS in a mechanical loading test application on several different types of wood are given here as well. / Master of Science