A smart structure based on carbon fiber reinforced polymer (CFRP) embedding optical fibers is proposed for distributed sensing in structural health monitoring. The proposed CFRP package provides mechanical protection to the optical fiber, enables temperature-strain discrimination, and also facilitates the sensor's installation to secure reliable measurements. Experimental results verify a linear strain sensor response with temperature compensation, agreeing well with the response of strain gauges and the expected theoretical behavior. The smart structure can be used by gluing it on the surface of the monitored structure or by embedding it as one of the layers used during manufacturing big composite structures.