A system and method are provided for determining wall thickness of a structure such as a metallic pressurized pipe. The system includes an optical fiber having a plurality of Fiber Bragg Gratings (FBGs), and a mounting for securing the FBGs over discrete portions of the exterior surface of the pipe such that strain in the pressurized pipe wall is transmitted to the FBGs. The system further includes a light source and a light sensor coupled to an end of the optical fiber. The light sensor converts light reflected back from the FBGs into electrical signals that a digital processor converts into strain measurements. The FBGs are mounted around portions of the pipe expected to have significant metal loss as well as portions of the pipe expected to have negligible metal loss. The method includes at least one of comparing relative strains at locations with negligible metal loss to those with significant metal loss to accurately determine the thickness of the wall with metal loss; compensating for temperature effects by considering relative strains at areas of the pipe with and without metal loss; and measuring axial strain on the pipe with one or more of the FBGs to correct for at least one of bending and torsion effects on hoop strain.