Abstract: An optical rate sensor (200) is disclosed for use in inertial reference systems to measure rates of angular rotation with substantially high resolution and sensitivity. The sensor (200) comprises a passive ring Sagnac interferometer (201) with a multiturn fiber optic ring (232) through which counter-propagating optical waves are transmitted. A nonreciprocal time variant phase modulation is applied to the waves along with periodic effective transposition of ring ports. The waves are combined to produce a "zero order" fringe pattern having an intensity varying in accordance with the relative phase between the counter-propagating waves. An intensity signal is derived from the fringe pattern having a phase offset corresponding to the Sagnac induced phase shift which in turn is linearly proportional to the angular rotation rate of the passive ring. Sampling, averaging and estimation circuits detemine the offset by detecting zero-crossing locations of the signal.