In this paper, an encoding strategy is used to design specialized fiber Bragg grating (FBG) sensors. The encoding of each sensor requires two binary codewords to define the amplitude and phase patterns of each sensor. The combined pattern (amplitude and phase) makes each sensor unique and therefore two or more sensors can be identified under spectral overlapping. In this way, we add another dimension to the multiplexing of FBG sensors, obtaining an increase factor ‘n’ to enhance the number of sensors that the system can handle. A proof-of-concept scenario with three sensors was performed, including the manufacturing of the encoded sensors. Furthermore, an interrogation setup to detect the sensors central wavelength was proposed and its working principle was theoretically developed. Results show that total identification of the central wavelength is performed under spectral overlapping between the manufactured sensors, achieving a three-time improvement of the system capacity. Finally, the error due to overlapping between the sensors was assessed obtaining approximately 3 pm, which makes the approach suitable for use in real measurement systems.