It is well known that cylindrical guided waves are very efficient for detecting pipe wall defects when pipes are open in the air. In this paper it is investigated how efficient the guided waves are for detecting pipe wall damage when the pipes are embedded in the soil. For this purpose guided waves were propagated through pipes that were buried in the soil by placing transmitters on one end of the embedded pipe and receivers on the other end. Received signals for both defect-free and defective pipes were recorded. Then the received signals were subjected to wavelet transforms. To investigate whether embedding the pipe in the soil makes it more difficult to detect the pipe wall defects, the same set of defective and defect-free pipes were studied before and after burying them in the soil. In both cases the defective pipes could be easily identified. Interestingly, contrary to the intuition, it was observed that under certain conditions defective pipes could be identified more easily in buried conditions. For example, the difference between the strengths of the initial parts of the received signal from defect-free and dented pipes was found to be greater for the buried pipes. Some qualitative justification for easier detection of buried dented pipes is provided.