Recently, Rayleigh scattering-based distributed fiber sensors have been widely used for measurement of static and dynamic phenomena such as temperature change, dynamic strain, and sound waves. In this review paper, several sensing systems including traditional Rayleigh optical time domain reflectometry (OTDR), Φ-OTDR, chirped pulse Φ-OTDR, and optical frequency domain reflectometry (OFDR) are introduced for their working principles and recent progress with different instrumentations for various applications. Beyond the sensing technology and instrumentation, we also discuss new types of fiber sensors, such as ultraweak fiber Bragg gratings and random fiber gratings for distributed sensing and their interrogators. Ultimately, the limitations of Rayleigh-based distributed sensing systems are discussed.