Various embodiments of the present disclosure provide a clearance detection system and method using frequency identification. Generally, the clearance detection system of the present disclosure uses a fiber optic sensor to determine a distance between a target traversing through a target area and a wall of a housing or casing within which the target is rotating. In various embodiments, the clearance detection system does so by projecting a light field including multiple alternating and diverging illuminated and non-illuminated regions into the target area, collecting light reflected off of the target as the target traverses through the light field, generating an oscillatory signal based on the collected reflected light, identifying the dominant frequency of the signal, and using the dominant frequency to determine the distance.