Immune to electromagnetic interference, Fiber Bragg Grating (FBG) optical sensors are multiplexable, highly sensitive to minute strains, and can facilitate maximum smart structure functionality, with minimum weight and size. In conjunction with advanced damage characterization algorithms, FBG sensor systems are expected to play an increasing role in extending the life and reducing costs of new generations of civil, mechanical and aerospace systems. In this paper, we discuss the development of fast parallel processing FBG interrogation systems. Comparison with other structural health monitoring systems demonstrates better signal-to-noise, high-speed multi-sensor support and damage detection potential.