Composite polymers have become widely used in industries such as the aerospace, automobile, and civil construction industries. Continuous monitoring is essential to optimize the composite components’ performance and durability. This paper describes the concept of a distributed fiber optic smart textile (DFOST) embedded into a composite panel that can be implemented during the fabrication process of bridges, planes, or vehicles without damaging the integrity of the composite. The smart textile used an embroidery method to create DFOST for easy installation between composite laminates. It also allows different layout patterns to provide two- or three-dimensional measurements. The DFOST system can then measure strain, temperature, and displacement changes, providing critical information for structural assessment. The DFOST was interrogated by using an optical frequency domain reflectometry (OFDR). It could measure strain variation during the dynamic and static test with a spatial resolution of 2 mm and a minimum strain resolution of 10 μϵ. This paper focuses on the study of strain measurement.