A fiber-optic strain gauge system for use in structural monitoring and smart-structure applications is described. The strain gauge uses a fiber-optic Bragg grating sensor to measure strain and a passive, wavelength demodulation system to determine the wavelength of the narrow-band, backreflected spectrum from the grating sensor. The fiber-optic strain gauge system permits the measurement of both static and dynamic strains with a noise-limited resolution of 0.44 microstrain/√Hz, a measurement dynamic range of 27.8 dB, and a bandwidth of 250 Hz.