Incomplete penetration is a type of welding defect that severely impacts the quality of weldments. In order to identify penetration levels in pulsed laser and plasma transferred arc (laser-PTA) hybrid welding, this paper uses structure-borne acoustic sensors to detect acoustic signals. Their characteristics are then analyzed with respect to the time and frequency domains. Acoustic signals characteristic of incomplete-penetration defects were extracted using a Butterworth band-pass filter. Physical mechanisms of laser excited acoustic wave were then studied by analyzing the correlation between incomplete-penetration defects and their characteristic acoustic signals. The results showed that acoustic signals correlating to incomplete-penetration defects have characteristic frequencies ranging from 0 to 10 kHz, which are generated by interaction between the pulsed laser beam and molten pool. An incomplete-penetration defect constitutes an acoustic cavity, which is an acoustic transmission structure. The structure of phonation sources and the acoustic cavity are affected by levels of penetration, giving rise to acoustic signals with different characteristics. In general, the study of physical mechanisms of laser excited acoustic wave lays a foundation for on-line identification of incomplete-penetration defects in laser-PTA hybrid welding.