A new technique to multiplex interferometric optical fiber sensors in the spatial frequency domain is reported that is especially suitable for applications in smart structures and materials. It can greatly reduce the number of fiber-optical devices in the network system and employs a high-speed noniterative phase-retrieval technique to trace the phase changes in each fiber sensor. In addition, the sensor system operation is virtually immune to the polarization fading problem without the need for polarization-maintaining fibers or any special devices. A preliminary investigation based on computer simulation has been undertaken to assess the system's feasibility and performance.