Systems and methods for distributed downhole sensing of operating parameters in an ESP utilizing MEMS sensors. In one embodiment, an ESP is installed in a well. The ESP has a pump, a gas separator, a seal section and a motor. Multiple MEMS sensors are positioned within one or more of the ESP components. Each of the MEMS sensors has a sensor component and on-board circuitry that are formed on a substrate. Each MEMS sensor's sensor component senses a corresponding operating parameter and provides sensed information to the on-board circuitry, which processes the received sensor signal as needed and provides the processed information at an output of the MEMS sensor. The outputs of the different MEMS sensors can be networked together, and the sensor information for the different operating parameters can be communicated to equipment at the surface of the well via a common electrical line.