Abstract: An optical temperature compensation system for spectral modulation sensors includes a light director for receiving excitation light, a spectral modulation sensor for receiving and modulating a first portion of the excitation light from the light director, and an optical processing component for receiving and determining properties of a second portion of the excitation light from the light director and the modulated first portion of the excitation light. The optical processing component comprises a dispersive element for dispersing the second portion of the excitation light and the modulated first portion of the excitation light and a charge transfer device for converting the dispersed portions of light into electrical signals. A digital signal processor calculates a detected ratio of the electrical signals which compensates for inaccuracies in measurement due to source temperature variations.