Nowadays, structural health monitoring (SHM) is one of the most critical subjects in geotechnical engineering. All structures (such as buildings and bridges) have a limited life span. Phenomena such as corrosion, fatigue, and excessive loading cause damage to these structures. The main goal of SHM is the timely detection of structural damages during or after a dynamic excitation to prevent destructive damage due to failure. The study investigates the effectiveness of wavelet transform techniques (discrete and continuous approach) as a signal processing-based method to monitor the condition of Pile-soil-superstructure systems. The primary objective is to identify defects in these systems under earthquake excitations. In this way, the first step determined the seismic response of a single pile embedded in one layer of Nevada sand using Abaqus finite element software. In the second step, the ability of acceleration signal processing recorded in different parts of the pile has been evaluated to identify pile defects. In the present study, damage is not simulated in the finite element model. The yielding of the pile under the earthquake record was considered a defect. In this context, the main goal is to detect yielding in the pile cross using acceleration signal processing during earthquake excitations.