This paper is focused on the characterization of a fiber Bragg grating (FBG) sensor interrogation system based on a fiber ring laser with a semiconductor optical amplifier as the gain medium, and an in-loop electro-optical modulator. This system operates as a switchable active (pulsed) mode-locked laser. The operation principle of the system is explained theoretically and validated experimentally. The ability of the system to interrogate an array of different FBGs in wavelength and spatial domain is demonstrated. Simultaneously, the influence of several important parameters on the performance of the interrogation technique has been investigated. Specifically, the effects of the bandwidth and the reflectivity of the FBGs, the SOA gain, and the depth of the intensity modulation have been addressed.