To perform the realtime strain and fracture monitoring of the smart composite structures, two optical fiber sensor systems are proposed. The two types of the coherent sources were used for fracture signal detection - EDFA with FBG and EDFA with Fabry-Perot filter. These sources were coupled to EFPI sensors imbedded in composite specimens. To understand the characteristics of matrix crack signals, at first, we performed tensile tests using surface attached PZT sensors by changing the thickness and width of the specimens. This paper describes the implementation of time-frequency analysis such as short time Fourier transform (STFT) and wavelet transform (WT) for the quantitative evaluation of fracture signals. The experimental result shows the distinctive signal features in frequency domain due to the different specimen shapes. And, from the test of tensile load monitoring using optical fiber sensor systems, measured strain agreed with the value of electric strain gage and the fracture detection system could detect the moment of damage with high sensitivity to recognize the onset of micro-crack fracture signal.