The recent development of a new high speed differential thermography camera by Stress Photonics for NASA opens new opportunities to develop highly useful tools to aid in life prediction and characterize damage in monolithic materials subjected to extreme environments. In the case of monolithic materials, the fracture mechanics parameters KI, KII, KIII, crack length, and crack orientation can be measured. For composites, stiffness, microcrack density, and other indications of material damage can be measured by using thermoelastic and thermal diffusivity measurements. Additionally, differential thermography can be used to characterize the redistribution of stresses at critical design features such as fastener holes and notches. Concepts proven in Phase I and elsewhere can now be combined to provide a set of tools in the form of hardware and software that will allow engineers to assess the criticality of damage in a wide range of materials and thermal environments.