Wall-thinning in the stainless steel pipelines due to corrosion and erosion due to the harsh operating conditions and the transporting medium cause’s pipeline failures. Thus detection of a change in local wall thickness of pipelines is extremely important for accident reduction. A new nondestructive testing (NDT) method called transient eddy current oscillations (TECO) has been proposed in this report to detect a change in the thickness of a stainless steel covered with insulation. This method uses a probe which consist a capacitor to discharge through an induction coil (excitation coil) and the resultant magnetic field detected by using a Hall-effect sensor. A stainless steel test specimen of different thicknesses was prepared to test the feasibility of the proposed method. Several thicknesses of plastic plates were used to simulate the insulation on the steel plates. Different time domain features were used in the detected voltage response of probe to detect the thickness of the test specimen. The proposed method can be a new potential NDT tool for the detection of corrosion and wall thickness in industrial structures.