Lengths of coiled tubing have sensor carrier elements mounted therebetween such that a plurality of sensor carrier elements are positioned along a length of coiled tubing. Each sensor carrier element carriers a sensor implemented with one or more intrinsic fiber optic sensor elements positioned therein for measuring one or more parameters in an environment. The intrinsic fiber optic sensor elements are multiplexed on one or more optical fibers along the length of the coiled tubing thereby forming a length of coiled tubing having a plurality of spaced apart sensors. The optical fiber or fibers positioned along the length of the coiled tubing are positioned in a fiber carrier which protects the fiber or fibers from the harsh environment. The fiber carrier may be interconnected to each of the sensors to isolate the fibers from the harsh environment. Each sensor carrier element provides the desired transmission of environmental conditions to the sensor carried therein, such as fluid communication, heat transmission, acoustic signal transmission, etc., such that the sensor contained in the sensor carrier element is responsive to a parameter of interest. A plurality of sensors may be serially connected to one another for distributed sensing of one or more parameters at multiple locations along the length of the coiled tubing. The sensor carrier elements are interconnected to the coiled tubing to provide a reliable and secure seal therebetween. The sensor carrier elements are configured to maintain the structural integrity of the coiled tubing while at the same time carrying a sensor implemented with an intrinsic fiber optic sensor element. The sensor carrier elements may be interconnected to the coiled tubing by press fit engagement, welding, fusion, and/or any other suitable method for providing a secure connection between the coiled tubing and the sensor carrier elements.