Active fiber composites (AFC) composed of lead zirconate titanate (PZT) fibers embedded in an epoxy matrix and sandwiched between two interdigitated electrodes provide a thin and flexible smart material device which can act as a sensor or actuator. The thin profiles of AFC make them ideal for integration in glass or carbon fiber composite laminates. However, due to the low tensile limit of the PZT fibers, AFC can fail at strains below the tensile limit of many composites. This makes their use as a component in an active laminate design somewhat undesirable. In the current work, tensile testing of smart laminates composed of AFC integrated in glass fiber laminates was conducted to assess the effectiveness of different packaging strategies for improving AFC sensor performance at high strains relative to the tensile limit of the AFC. AFC were encased in carbon fiber, silicon, and pre-stressed carbon fiber to improve the tensile limit of the AFC when integrated in glass fiber laminates. By laminating AFC with pre-stressed carbon fiber, the tensile limit and strain sensor ability of the AFC were significantly improved. Acoustic emission monitoring was used and the results show that PZT fiber breakage was reduced due to the pre-stressed packaging process.