Civil Engineers have used fiber reinforced polymer (FRP) with high axial strength as an effective and economical alternative to steel in harsh corrosion environments. However, the practical applications of FRP are limited by the tendency of FRP materials to fail suddenly under lateral pressure and surface injury. For example, shear stresses result from the bonding effect between the FRP material and the structure of the anchorage system due to the lower shear strength of FRP. This paper proposes a novel smart FRP anchorage system with embedded optical fiber Bragg grating (FBG) sensors to monitor the axial strain state and accordingly the interfacial shear stress, as well as the interfacial damage characteristics of FRP anchorage. One FBG sensor was embedded in an FRP rod outside the anchorage region to evaluate the properties of the material, and seven FBG sensors were distributed along the rod in the anchor to monitor the axial strain variations and study the interfacial mechanical behaviors of the smart FRP anchorage under a static pulling load. The experimental results agreed well with theoretical predictions. The smart FRP anchorage system with optical FBG sensors proves effective and practical for monitoring the long-term mechanical behavior of FRP anchorage systems.