Terahertz (THz) reflection imaging is applied to characterize a woven glass fibre-reinforced composite laminate with a small region of forced delamination. The forced delamination is created by inserting a disk of 25- μ m-thick Upilex film, which is below the THz axial resolution, resulting in one featured echo with small amplitude in the reflected THz pulses. Low-amplitude components of the temporal signal due to ambient water vapor produce features of comparable amplitude with features associated with the THz pulse reflected off the interfaces of the delamination and suppress the contrast of THz C- and B-scans. Wavelet shrinkage de-noising is performed to remove water-vapor features, leading to enhanced THz C- and B-scans to locate the delamination in three dimensions with high contrast.