The system with branched optical fibers provides diagnostics and measurement of static and/or dynamic parameters in structures and structural elements. The system includes a structural material or element having a branched optical fiber embedded therein. The branched optical fiber includes a primary optical fiber segment and at least one secondary optical fiber segment branching therefrom. One or more fiber Bragg grating sensors are arranged on, and are in optical communication with, the primary optical fiber segment and the at least one secondary optical fiber segment. A signal analyzer receives signals generated by the fiber Bragg grating sensors representative of a magnitude of the physical parameter of the structural element.