In electromagnetic ultrasonic testing, it is difficult to recognize small-size bottom cracks by time of flight (ToF), and the lift-off fluctuation of the probe affects the accuracy and consistency of the inspection results. In order to overcome the difficulty, a novel EMAT (electromagnetic acoustic transducer)-PEC (pulse eddy current) composite sensor is designed. We use amplitude of bottom echo recorded by EMAT to identify the tiny bottom crack as well as the amplitude of PEC signals picked up by the integrated symmetric coils to measure the average lift-off of the probe in real time. Firstly, the effects of lift-off and bottom cracks on amplitude of bottom echo are distinguished combining the theoretical analysis and finite element method (FEM). And then an amplitude correction method based on the fusion of EMAT and PEC signals is proposed to reduce the impact of lift-off on the defect signal. The experimental results demonstrate that the designed composite sensor can effectively detect the bottom crack as small as 0.1mm* 0.3mm. The signal fusion method can accurately correct the amplitude of defect signal and the relative error is less than ±8%.