The performance of a strain sensor system based on the use of carrier-modulated gratings and Fourier-domain decoding is analyzed. For three sensors, Young`s modulus is measured as 69.98 ± 0.27, 69.15 ± 0.81, and 70.65 ± 0.58 GPa. Crosstalk is shown to exist only when two sensors are designed with an overlap of the carrier band in the Fourier domain. Improving the data processing shows it is possible to limit this crosstalk to a value below that of the system error. © 2006 IEEE.