The NATO Advanced Research Workshop on Signal Processing and Pattern Recognition in Nondestructive Evaluation (NOE) of Materials was held August 19-22, 1987 at the Manoir St-Castin, Lac Beauport, Quebec, Canada. Modern signal processing, pattern recognition and artificial intelligence have been playing an increasingly important role in improving nondestructive evaluation and testing techniques. The cross fertilization of the two major areas can lead to major advances in NOE as well as presenting a new research area in signal processing. With this in mind, the Workshop provided a good review of progress and comparison of potential techniques, as well as constructive discussions and suggestions for effective use of modern signal processing to improve flaw detection, classification and prediction, as well as material characterization. This Proceedings volume includes most presentations given at the Workshop. This publication, like the meeting itself, is unique in the sense that it provides extensive interactions among the interrelated areas of NOE. The book starts with research advances on inverse problems and then covers different aspects of digital waveform processing in NOE and eddy current signal analysis. These are followed by four papers of pattern recognition and AI in NOE, and five papers of image processing and reconstruction in NOE. The last two papers deal with parameter estimation problems. Though the list of papers is not extensive, as the field of NOE signal processing is very new, the book has an excellent collection of both tutorial and research papers in this exciting new field.