Acoustic emission (AE) testing is used for the continuous evaluation of structural integrity and the monitoring of damage evolution in structural components and materials. During operation, the environmental and loading conditions of metal structures can result in corrosion and surface wear damage. The early detection of surface degradation flaws is crucial, as they can serve as local stress concentration points, leading to crack initiation and failure. In this work, the effectiveness of AE in monitoring corrosion and surface wear flaw formation was experimentally evaluated. AE sensors were installed on steel test plates during the artificial induction of corrosion and surface wear in order to detect and record the generated AE signals. Corrosion-related AE signals typically exhibit low amplitude, count, and energy values. The direct detection of active corrosion can be challenging in noisy environments, but it can be carried out under certain conditions using dedicated AE sensor groups. Surface-wear-related AE signals exhibit high amplitude, energy, and count values, with long duration values that are associated with wear and grinding conditions. It was found that AE sensors can be utilised to detect corrosion and surface degradation events. The effectiveness of the AE method in detecting surface degradation in noisy environments can be improved by implementing a filtering methodology. This will limit the recording of noise-related signals that can mask out actual surface degradation AE events.