This report covers the development of fiber optic hydrogen and temperature sensors for monitoring dissolved hydrogen gas in transformer oil. The concentration of hydrogen gas is a measure of the corona and spark discharge within the transformer and reflects the state of health of the transformer. Key features of the instrument include use of palladium alloys to enhance hydrogen sensitivity, a microprocessor controlled instrument with RS-232, liquid crystal readout, and 4-20 ma. current loop interfaces. Calibration data for both sensors can be down loaded to the instrument through the RS-232 interface. This project was supported by the Technology Transfer Initiative in collaboration with J. W. Harley, Inc. through the mechanism of a cooperative research and development agreement (CRADA).