In general, open-loop fiber-optic gyroscopes (FOG) are less stable than closed-loop FOGs but they offer simpler implementation. The typical operation time of line-of-sight (LOS) stabilization systems is a few seconds to one hour. In this paper, a open-loop fiber optic gyroscope (FOG) for LOS applications is designed and implemented. The design goal is aimed at implementing a low cost, compact FOG with low Angle Random Walk (ARW) (<deg ) and bias instability ( < deg ). The FOG uses an open-loop all-fiber configuration with 100M PM fiber wound on a small diameter spool. In order to get the design goal, digital signal processing techniques for signal detection, modulation control and compensation are designed and implemented in FPGA.