Embedding fiber optic sensors (FOS) in fiber reinforced composite materials has led to the development of smart structures with simultaneous strain and temperature sensing functionalities. Structural health monitoring systems based on permanently embedded sensors in combination with strain measurements have shown promise in improving the reliability and safety of composite structures, while reducing lifecycle costs, and improving design and manufacture processes. Optical backscatter reflectometer (OBR) based on Rayleigh scattering enables high-spatial-resolution distributed sensing using the entire length of telecom optic fibers as sensor. Only limited studies have been published on the ability of embedded FOSs to quantitatively measure strain development or detect damage as function of loading conditions in fiber reinforced composite materials. Embedding of FOSs in composite test samples has proven to be a challenging task: signal losses due to bending or breakage, in particular at entry and exit points in the laminate, lead to a low percentage of FOS surviving the manufacture process. Since conventional telecom fibers (100 – 200 μm) are an order of magnitude bigger than fiber reinforcements, miniaturizing FOSs can lead to less microstructural defects and ultimately to a negligible effect on the mechanical properties of the host material. Moreover, the FOS coating material should be properly selected in order to optimize strain transfer from the substrate to the FOS. A robust technique for the manufacture of composite test samples instrumented with FOSs is here introduced. The winding of reinforcement fibers – in the form of pre-impregnated tows, also known as tow-pregs – and FOS is automated by means of a multi-filament winding machine. FOS entry and exit points from the composite laminate are protected during the test sample preparation to avoid signal loss due to fiber bending or breakage. This approach significantly decreases manual labor and increases reproducibility; a high sensor survival rate is achieved. Miniaturized (cladding diameter of 80 μm) FOSs are embedded during the manufacture process; polyimide and high temperature acrylate are used as FOS coating material. Composite test samples are submitted to quasi-static loading conditions (e.g. tensile, compression tests) and distributed strain measurements are simultaneously performed with OBR. The strain sensing capabilities of the embedded FOSs under different loading conditions as well as the effect of embedded FOSs on the microstructure and mechanical properties of the composites are analyzed.