This paper mainly describes a methodology of finding appropriate optical fiber sensors and associated potential demodulation techniques that have the capability to measure impact induced high-strain rate events in graphite/epoxy panels. The capacity of the sensor's dynamic range has to accommodate the average failure strain of about 9,000 j and center frequency of about 40 Hz for a typical low velocity impact event for [90,/04/OF(0)/04/902] and [(45/-45)3/OF(0)/(-45/45)3] layups. Three potential demodulators are investigated. These include the synthetic heterodyne with differential-cross-multiplier (DCM), single channel phase tracker, and sin(4)/cos() based analog phase tracker all using a 1 0 KHz sinusoidal modulation. The maximum sensor lengths for different sensor types have been calculated based on the Fourier spectrum of a typical impact event and maximum detectable phase vs. frequçncy of these demodulators. As a result, a localized and reflective version of a In-Line Fiber Etalon (ILFE) sensor with a maximum cavity length of 73 jm for 1 .3 pm wave-length of a light source is selected for impact testing. The strain responses from three different demodulators are comparable to that of a surface mounted resistance strain gage.