In this paper, the excitation and propagation of guided waves in multilayer hollow cylinders with piezoelectric wafer active sensor (PWAS) transducers were modeled with the normal mode expansion (NME) method using the semi-analytical finite element (SAFE) formulation. The theoretical development of SAFE for hollow cylindrical structures was introduced and used to obtain guided-wave mode shapes and dispersion curves of multilayer hollow cylinders. The SAFE discretization was applied across the thickness. The layers present in the cylinder were modeled by grouping the elements in the region corresponding to the respective layers. Each finite element region was given the property of the layer that it represented. The number of elements in a layer was determined through convergence studies. The PWAS excitation effect, introduced using the ideal-bonding assumption, was represented by a line-force acting on the PWAS boundary. The SAFE-NME solution obtained in the wavenumber domain was resolved in the physical domain through inverse Fourier transform and residue theorem. Experimental validation of theoretical prediction was performed by comparison with scanning laser Doppler vibrometer (SLDV) measurements from a “6-inch schedule-40” pipe of 11 mm thickness installed with a 7-mm square PWAS transducer for wave excitation. Numerical prediction of the guided wave propagation emanating from the PWAS was first performed and wavefront visualization was obtained. An SLDV area scan of the guided waves generated by the PWAS was then performed and compared with numerical predictions. A good match between experiment and prediction was observed.