Identification and classification of already localized AE sources is one of the most important and also most difficult problems in AE monitoring. In this paper we suggest new concept of precise AE source localization and identification in complex structures. The method is based on a Time Reversal (TR) AE signal processing. AE signals, recorded by transducers relatively far from the source are generally considered as resulting of multiple convolution of the source function with the Green's (wave transfer) function and transfer function of sensors connected to signal processing devices. To obtain the source signals not affected by the wave path through a structure, AE signals detected by more receiving sensors are time reversed and rebroadcast using the same transducers switched in transmitting mode. Roughly localized AE source area is scanned with non-contact sensor (e.g. laser interferometer) and perfect synchronization of detected TR signals points out the precise source position. After deconvolution concerning transducer and device transfer functions, the TR signal represents partially reconstructed AE source function, which is then used to its identification. Suggested offline procedure, called TRAED (TR AE signal Deconvolution) is relatively simple and doesn't require any knowledge about the structure material and geometry [1]. Its use, merits, and limits are demonstrated on examples of artificial AE sources (PEN-Tests, defined ultrasonic pulses) acting on steel and composite plates, and also on complicated parts of an aircraft. Results show effectiveness of both inverse problems solution dealing with precise source location and partial reconstruction of the source function. TRAED also removes effects of anisotropy and wave dispersion, and minimizes scatter of parameters derived from AE signals detected by differently spaced transducers. The method can be also applied to the well-designed computer simulation model of elastic wave propagation in the structure without any additional experiments. In a case of many dispersed AE sources (e.g. in composites), the TRAED supports AE tomography of monitored structure [2], and in connection with the Nonlinear Elastic Wave Spectroscopy (NEWS) procedure it is used to the damaged zones detection as a part of the Structural Health Monitoring (SHM) system.