In modern tunnelling, deformation monitoring is an important component to ensure a safe construction. It is state of the art to measure displacements at the inner side of the tunnel lining using total stations. In addition, pointwise geotechnical sensors, e.g. electric strain gauges, may be installed in geological fault zones, which, however, do not deliver a complete picture of the internal deformations. The Institute of Engineering Geodesy and Measurement Systems (Graz University of Technology) supported by the Austrian Federal Railways (ÖBB‐Infrastruktur AG, SAE Fachbereich Bautechnik/Tunnelbau) developed a fibre optic sensing system, which realizes thousands of measurement points inside the tunnel lining. The distributed measurements can be used to assess the in‐situ strain behaviour as well as to localize failures (e.g. cracks) in the lining. This paper reports about the calibration of the fibre optic system under well‐known laboratory conditions and the practical utilization of the system in mechanized and conventional tunnelling. The results demonstrate the high potential of distributed fibre optic systems and their capability especially in the operational phase to extend classical measurement methods in tunnelling projects.