An automatic gain control system for a fiber optic gyroscope control loop includes an adjustable gain applied to the gyro output signal. A pilot signal is injected into the fiber optic gyroscope control loop. A compensation loop receives signals output from the control loop and also receives pilot signals. The compensation loop processes the pilot signal to produce a compensation signal that is combined with signals output from the control loop to provide a compensated fiber optic gyroscope output signal. An automatic gain control loop is connected between the compensation loop and the adjustable gain applied to the fiber optic gyroscope output signal. The automatic gain control loop includes a gain error demodulator that multiplies the compensated fiber optic gyroscope output signal and the compensation signal together to produce a gain error signal used to control the adjustable gain in order to stabilize the gain of the gyro control loop.