The amplitude error of phase modulator used in closed-loop fiber optic gyroscope has occurred by the temperature dependency of the electro-optic coefficient, and also can be due to the square-wave dither signal which is generally applied for eliminating the deadzone. This error can cause bias drift and scale factor error. This paper analyzes the temperature dependency of the modulation amplitude and the relationship with the scale factor of the gyroscope, and deals with an amplitude control method. The error calculation logic considering the dither signal is implemented on the signal processing module. The result of experiments from a prototype gyroscope shows the effect of the modulation amplitude control and a considerable improvement on performances.