Abstract: An interferometer apparatus for an optical fiber system and method of use is described. The interferometer comprises an optical coupler and optical fibers which define first and second optical paths. Light propagating in the first and second optical paths is reflected back to the optical coupler to generate an interference signal. First, second and third interference signal components are directed towards respective first, second and third photodetectors. The third photodetector is connected to the coupler via a non-reciprocal optical device and is configured to measure the intensity of the third interference signal component directed back towards the input fiber. Methods of use in applications to monitoring acoustic perturbations and a calibration method are described.