Optical monitoring relates the dynamic changes in measured light intensity to the extent of treatment-induced coagulation that occurs during laser interstitial thermal therapy. We utilized a two-region Monte Carlo simulation to elucidate the nature of the changes in interstitial radiance and fluence that result from the formation of a volume of thermal coagulation surrounding a cylindrical emitter. Using simulation results, we demonstrate that radiance sensors are more sensitive than traditional fluence sensors to coagulation-induced scattering changes. Radiance measurements take advantage of directional detection angles that are more receptive to the onset and passing of the coagulation boundary. We performed experiments with albumen phantoms to demonstrate the practicality of the radiance method for monitoring interstitial laser thermal therapy.