The　pulsed　eddy　current　(PEC)　technique　exhibits　considerable　benefits　over　conventional　eddy　current　techniques.　The　structure　and　dimensional　parameters　of　PEC　sensors　considerably　influence　the　PEC　systems.　Conventional　PEC　sensors　are　susceptible　to　background　noise　of　a　magnetic　excitation　field.　To　strengthen　the　magnetic　gathering　ability　and　improve　detection　sensitivity,　a　magnetic　shielding　shell　structure　was　introduced　to　PEC　sensors.　In　this　study,　a　novel　canister　structure　and　magnetic　core-based　PEC　sensor　with　magnetic　shielding　was　designed.　Finite-element　simulation　and　experimental　study　were　performed　subsequently　to　optimize　the　design.　A　3-D　finite-element　simulation　model　was　established　according　to　the　eddy　current　detection　mechanism　and　electromagnetic　shielding　principle.　The　influence　of　the　PEC　sensor　structure　and　size　on　its　detection　performance　was　observed.　Next,　a　2-D　axis-symmetric　model　was　established,　and　the　size　of　this　PEC　sensor　was　optimized　by　using　the　orthogonal　approach.　The　results　revealed　that　the　detection　performance　of　this　PEC　sensor　could　be　improved　by　incorporating　an　appropriate　magnetic　shielding　mechanism　and　through　the　optimization　of　the　sensor　size.　The　research　results　show　that　compared　with　the　PEC　sensor　without　magnetic　shield,　the　PEC　sensor　with　magnetic　shield　developed　in　this　article　can　obtain　higher　signal　amplitude　and　can　be　better　applied　to　surface　and　subsurface　defect　detection.