In an effort to support the advancement of U.S Navy initiatives in improved machinery diagnostics and control, improved information collection for damage control systems, and greater integration of shipboard sensor information the Naval Surface Warfare Center, Carderock Division (NSWCCD) is engaged in an ongoing project to evaluate and develop advanced optical sensors. Initial efforts focused on examining the possibility of replacing some mature conventional sensors with their optical counterparts. Currently, NSWCCD is focusing on specific niche applications where measurements can not be made by the conventional means, or where optical sensors provide a significant performance advantage. Focus areas of innovative fiber optic sensors have included EMI immunity, measurement of absolute strain, smart structure development, and linking advanced sensors to optical communications networks. Sensor technologies being investigated include Fabry-Perot type interferometers, grating type fiber optic sensors, and optically operated MEMS sensors. Commercial, off-the-shelf (COTS) sensors which utilize the preceding technologies are being tested and evaluated in Navy laboratories. In addition, research initiatives are underway to develop new sensors as well as methods for interfacing these sensors with current and future controls, communication, and monitoring equipment.