Here, we describe a novel FBG interrogation system in which FBGs are used as both sensing and reference elements. The reference FBGs is bonded to a mechanical flexure system having a linear amplification of 1:3.5, which is actuated using a piezo-actuator by applying a 0-150V ramp. The lengths of the reference gratings decide the maximum strain that can be applied to the reference grating, which in turn decides that strain range which can be interrogated. The main advantages of the present system are the on-line measurement of the wavelength shifts, small size, good sensitivity, multiplexing capability and low cost.