Fiber Bragg grating (FBG) sensors have emerged as a promising technology for enhancing the monitoring and maintenance of smart grid systems. In this study, a comprehensive simulation-based investigation into the application of FBG sensors for monitoring critical components of the smart grid infrastructure, including high-voltage transmission towers, insulators, and overhead lines was presented. A wavelength division multiplexed FBG sensor network was designed and deployed to capture key parameters such as strain, temperature, and sag, enabling real-time monitoring and early detection of potential issues. The simulation results demonstrate the effectiveness of FBG sensors in accurately detecting changes in these parameters, with high sensitivity and reliability. The findings of this study underscore the importance of FBG sensors in enhancing the reliability, efficiency, and resilience of smart grid systems, paving the way for their widespread adoption in modern power networks.