The detection of corrosion in insulated pipes is of major importance to the oil and chemical industries. Current methods involving point-by-point inspection are expensive because of the need to remove the insulation. An alternative method which is being developed at Imperial College is to propagate guided waves in the walls of the pipes, and to look for reflections from defects. The test configuration is essentially pulse-echo; the insulation is removed at just one location on a pipe and the signals are then transmitted and received using a single transducer unit. The technique is currently undergoing field trials. This paper presents a review of the studies of the propagation of the waves and their sensitivity to defects which have been conducted in order to provide a sound scientific basis for the method. Issues of importance were the selection of the optimum guided wave modes and the establishment of relationships between the defect size and the strength of wave reflection. Analytical and numerical studies were conducted in parallel with an extensive experimental programme.