Pulse oximetry has become a standard for patient monitoring in the operating room, and the finger is the most common site used for monitoring blood oxygen saturation (SpO2). However, SpO2 measurements made from extremities such as the finger, ear lobe and toes become susceptible to inaccuracies, when patients become hypothermic, hypovolemic and vasoconstrictive. This is due to the week arterial pulsations detected in these conditions. To overcome this limitation, the external auditory canal has been proposed as an alternative monitoring site for estimating SpO2, on the hypothesis that this central site will be better perfused. A dual wavelength optoelectronic sensor along with a processing system was developed to investigate the suitability of measuring photoplethysmographic (PPG) signals and SpO2 values in the human auditory canal. A pilot study was conducted on 12 healthy volunteers to validate the developed sensor. The red and infrared PPG signals obtained from all the volunteers were of very good quality. The SpO2 values recorded from the ear canal were compared with simultaneously acquired data from a commercial finger pulse oximeter. The results show good correlation between the commercial pulse oximeter and the custom made ear canal sensor (r(2) = 0.825).