Abstract: A method of non-destructively identifying and characterizing defects in a rotary drill component is provided. The method includes providing a drill component and an ultrasonic test system including a phased array ultrasonic transducer (PAUT). The method also includes acoustically coupling the PAUT to a surface location, transmitting focused ultrasonic acoustic waves at the location into the PAUT and recording a reflected acoustic response corresponding to a portion of a predetermined volume of a microstructure of the component associated with the location on the surface. The method also includes storing the response and moving one of the transducer or the component to a plurality of unique locations representative of the predetermined microstructure and repeating these steps. The method also includes processing the responses and providing an output signal to an output device configured to provide an output indicative of differences in the output signal within the predetermined volume of the microstructure.