We demonstrated an actual implementation of smart sensor technology based on IEEE 1451.1 and 1451.4 standards. The device is embedded with a MCU, FLASH memory, SRAM, eight analog-to-digital channels, and a 2.4 GHz wireless module. The implementation successfully demonstrated the sensor's plug-and-play capability through the use of a Transducer Electronic Data Sheet (TEDS). First, the TEDS is resided in the embedded FLASH memory within the intelligent sensor transceiver. Second, a Virtual TEDS is located in an intelligent processor to extend the benefits of the standardized TEDS to legacy sensors and applications where the embedded memory is not available. A HTML-based TEDS editor, which is located in the intelligent processor, allows users to create a new TEDS or modify an existing one remotely over TCP/IP network. The edited TEDS can be downloaded from the intelligent processor to the intelligent sensor wirelessly. The virtual TEDS could also be downloadable from Internet-connected TEDS servers to the intelligent processor if it is required. TEDS associated sensor measurement is either transmitted to a station that uses the sensor directly over the intelligent processor or stored in the server located in the intelligent processor for other applications. The wireless intelligent sensor will be used as an element of an ISHM implementation at NASA Stennis Space Center, as it will communicate with a station that includes an ISHM model of a system developed using the software environment G2. ©2008 IEEE.