Lamb wave-based structural health monitoring offers excellent potential for real-time delamination detection in laminated structures. It necessitates fast and accurate numerical simulation of guided wave interaction with delaminations. Towards this objective, we present an efficient layerwise zigzag theory (ZIGT) based time-domain spectral element for wave propagation analysis of composite beam- and panel-type structures (strips) containing delamination at arbitrary locations. The ZIGT delivers accuracy like layerwise theories by allowing slope discontinuities in the in-plane displacement field at layer interfaces while maintaining computational efficiency like equivalent single-layer (ESL) theories, making it ideal for such analyses. The high-order elemental nodes at Lobatto points have only four displacement variables, irrespective of the number of layers in the laminate. Delamination is modelled using the region approach, adapting the recently proposed hybrid point-least squares continuity method to satisfy the nonlinear displacement field continuity at the delamination fronts. The model’s efficacy is examined vis-à-vis elasticity-based elements, ESL theory-based elements, and the ZIGT-based standard finite element for free vibration and guided wave propagation responses of composite strips featuring multiple delaminations. The present model shows superior overall efficiency, accuracy, and convergence. An application of the model is also explored for identifying delamination locations from Lamb wave velocity fields.