Diagnostic and condition monitoring of power transformers are key actions to guarantee their safe operation. The subsequent benefits include reduced service interruptions and economic losses associated with their unavailability. Conventional test methods developed for the condition assessment of power transformers have certain limitations. To overcome such problems, fiber optic-based sensors for monitoring the condition of transformers have been developed. Flawlessly built-up fiber optic-based sensors provide online and offline assessment of various parameters like temperature, moisture, partial discharges, gas analyses, vibration, winding deformation, and oil levels, which are based on different sensing principles. In this paper a variety and assessment of different fiber optic-based diagnostic techniques for monitoring power transformers are discussed. It includes significant tutorial elements as well as some analyses.