In this paper, an improved technique for a centralized fault monitoring and detection in Gigabitcapable Passive Optical Network using fiber Bragg grating sensor is proposed. The technique detects fault once it occurs at the vulnerable locations in the fiber optic distribution link by
the proposed Fiber Bragg Grating devices. The scheme uses an amplified Erbium Doped Fiber Amplifier monitoring signal in the C-band and a uniform Fiber Bragg Grating with different Bragg wavelengths and reflectivities as the branch identifiers in the network. The reflected signal from the
optical sensor is analyzed at the Optical Line Terminal in the Central Office by an Optical Spectrum Analyzer to determine the branch with rupture in the network. The simulated result obtained shows that the system can monitor and detect a fault in the Feeder Fiber link, up to 20 km at optical
power received of −44 dBm. The scheme is capable of detecting a fault in the various optical distribution network at the remote node in the customer’s end, at minimum optical power received of −58 dBm with negligible effects on data signal transmission.