In a high speed spindle system it is very important to monitor the state of rotating rotor. Particularly in active control spindle system the position sensor must provide feedback to the control system on the exact position of the rotor. In order to monitor the state of a high speed spindle exactly, high accuracy and wide frequency bandwidth of sensors are important. The focus in this paper is to make a fiber optic sensor for monitoring rotor of magnetic bearing, to design the circuit for detecting optical signal, and to evaluation static and dynamic characteristics of fiber optic sensor.