This work aims to investigate the effects of structural delamination location on the effectiveness of delamination assessment using a vibration-based non-linear chaotic oscillator method. The change in structural vibration characteristics due to delamination at different structural locations can pose a challenge for accurate delamination detection due to the possible weak changes in the measured vibration signal and the existence of noise that can corrupt the signal. Thus in this work, a chaotic oscillator method was used due to its sensitivity to relatively small changes in measured vibration signal and robustness to measurement noise. The effects of vibration sensing location on the sensitivity in detecting the location of delamination was also investigated in this work. The Lyapunov Exponent was used in conjunction with the chaotic oscillator as a damage index, for the purpose of defining an effective measure to locate the delamination damage in a laminated structure. The correlation between the damage index and vibration sensing location for different delamination locations was investigated for a laminated beam structure, with a method for finding an optimal location for vibration sensors proposed. It was found that a vibration sensor placed in selected structural regions can provide an increased level of sensitivity in detecting certain delamination locations. The results from this work also demonstrated the effectiveness of the developed method in determining an optimal placement for vibration sensors for delamination detection.