Abstract: An optical rate sensor (300) is disclosed for use in inertial reference systems to measure rates of angular rotation with substantially high resolution and sensitivity. The sensor (300) comprises a passive ring Sagnac interferometer (302) with a multiturn fiber optic ring (308) through which counter-propogating optical waves are transmitted. A non-reciprocal phase modulation is applied to the waves, and the waves are combined to produce a "zero order" fringe pattern having an intensity varying in accordance with the relative phase between the counter-propogating waves. The phase modulation is under control of modulated control signals which are functionally related to measured values of the angular rotation rate. The phase modulation thereby produces an intensity signal which tends to alternate between values of substantially maximum change with respect to given changes in phase shift resulting from the non-reciprocal phase modulation.