We report on the design and preliminary testing of an interferometric interrogator capable of large-scale time-division multiplexing of FBG sensors. The scheme employs a passive algorithm for phase demodulation, allowing changes in FBG sensor reflected wavelengths to be calculated instantaneously upon arrival, and incorporates a technique for identification of initial absolute sensor wavelengths in order to overcome the measurement ambiguity associated with interferometric schemes. The proposed system will allow for high-speed interrogation of large-scale FBG sensor arrays with interferometric resolution and the capability for dynamic, static, and absolute FBG wavelength measurement