Fiber Bragg grating (FBG) sensors provide excellent capability for the structural health monitoring (SHM) of load-bearing structures by allowing for local internal strain measurements within structures. However, the integration of these sensors to composite materials is associated with several challenges that have to be addressed to have the correct strain measurement and in turn to perform reliable SHM. One of the most important issues is the presence of uneven strain fields around FBGs, which significantly affect the response of the sensors and hence the reliability of the acquired data. The uniformity of the strain fields around sensors is important for dependable data acquisition; however, to generate such a condition, tow width-to-FBG length relationship, optical fiber configuration with respect to reinforcement fiber orientation, and crack density resulting from fatigue loading are very important factors that have to be considered. In this paper, these issues are addressed by investigating the signal properties of FBG sensors with 1 and 10 mm lengths embedded within the composite specimens during the manufacturing process. After fatigue testing of the specimens, it is shown that 1-mm-long FBGs embedded in-line with adjacent reinforcement fibers with tow widths of similar to 2 mm provide much more reliable signals than 10-mm-long FBGs embedded perpendicular to adjacent tows.