This paper addresses intelligent sensors and components as elements of Systems-of-Systems (SoS) organized as an architecture embodying a hierarchical network of distributed intelligent elements. The focus is on intelligent sensors and components and their functional contributions to implementation of Integrated Systems Health Management (ISHM) capability. The paper begins with an overview of ISHM in order to provide the context for an important application that can benefit from intelligent elements, followed by definitions of intelligent sensors and components, their functional attributes, physical and virtual realizations, and integration to contribute to the overall SoS ISHM capability. Prototype Intelligent Sensors are described along with their integration into an ISHM system for a Rocket Engine Test Stand at NASA Stennis Space Center.