A system is provided for monitoring a relative displacement of a pair of end-winding components. The system includes a structure mounted to the end-winding components at an angle with respect to the end-winding components for monitoring the relative displacement. The system further includes an optical fiber with a first portion including a fiber Bragg grating mounted to a surface of the structure to experience a strain resulting from a strain of the structure due to the relative displacement. The optical fiber includes a second portion internally routed through in the structure to the first portion mounted to the surface. The structure is configured so that the strain produced by the structure limits a magnitude of the strain of the fiber Bragg grating within a predetermined range over a span of the relative displacement of the end-winding components.