Abstract: The inspection of the dry storage canisters that house spent nuclear fuel is an important issue facing the nuclear industry; currently, there are limited options available to provide for even minimal inspections. An issue of concern is stress corrosion cracking (SCC) in austenitic stainless steel canisters. SCC is difficult to predict and exhibits small crack opening displacements on the order of 15–30 ?m. Nondestructive examination (NDE) of such microscopic cracks is especially challenging, and it may be possible to miss SCC during inspections. The coarse grain microstructure at the heat affected zone reduces the achievable sensitivity of conventional ultrasound techniques. At Oak Ridge National Laboratory, a tomographic approach is under development to improve SCC detection using ultrasound guided waves and model-based iterative reconstruction (MBIR). Ultrasound-guided waves propagate parallel to the physical boundaries of the surface and allow for rapid inspection of a large area from a single probe location. MBIR is a novel, effective probabilistic imaging tool that offers higher precision and better image quality than current reconstruction techniques. This paper analyzes the canister environment, stainless steel microstructure, and SCC characteristics. The end goal is to demonstrate the feasibility of an NDE system based on ultrasonic guided waves and MBIR for canister degradation and to produce radar-like images of the canister surface with significantly improved image quality. The proposed methodology can potentially reduce human radiation exposure, result in lower operational costs, and provide a methodology that can be used to verify canister integrity in-situ during extended storage.