An optical sensor diagnostic system includes a tunable narrow wavelength-band source 9 which provides a variable wavelength light 44 into an optical fiber 32,52. Reflective sensors 54,58, such as Bragg gratings, are disposed along the fiber 52 in the path of the variable light 44. The sensors 54,58 transmit light 56,60 having a minimum transmission wavelength which varies due to a perturbation, such as strain, imposed thereon. A tuner control circuit 42 drives the tunable light source 9 to cause the source light 44 to scan across a predetermined wavelength range to illuminate each sensor at its minimum transmission wavelength. The power of the transmitted light is converted to an electrical signal by a detector 64 and monitored by a signal processor 68 which detects drops in transmitted power level and provides output signals on lines 71 indicative of the perturbation for each sensor. The system may be configured in open loop mode to measure static strains, or closed loop mode to track static strains and measure dynamic strains. Also, the system may be used in a Fabry-Perot configuration to provide a very sensitive strain detection system. Further, the system may be configured in reflection or transmission mode.