Physics-based wave propagation computational models play a key role in structural health monitoring (SHM) and the development of improved damage quantification methodologies. Guided waves (GWs), such as Lamb waves, provide the capability to monitor large plate-like aerospace structures with limited actuators and sensors and are sensitive to small scale damage; however due to the complex nature of GWs, accurate and efficient computation tools are necessary to investigate the mechanisms responsible for dispersion, coupling, and interaction with damage. In this paper, the local interaction simulation approach (LISA) coupled with the sharp interface model (SIM) solution methodology is used to solve the fully coupled electro-magneto-mechanical elastodynamic equations for the piezoelectric and piezomagnetic actuation and sensing of GWs in fiber reinforced composite material systems. The final framework provides the full three-dimensional displacement as well as electrical and magnetic potential fields for arbitrary plate and transducer geometries and excitation waveform and frequency. The model is validated experimentally and proven computationally efficient for a laminated composite plate. Studies are performed with surface bonded piezoelectric and embedded piezomagnetic sensors to gain insight into the physics of experimental techniques used for SHM. The symmetric collocation of piezoelectric actuators is modeled to demonstrate mode suppression in laminated composites for the purpose of damage detection. The effect of delamination and damage (i.e., matrix cracking) on the GW propagation is demonstrated and quantified. The developed model provides a valuable tool for the improvement of SHM techniques due to its proven accuracy and computational efficiency.