In hydroelectric power plants (HP), vibration monitoring is usually provided for various parts of the hydropower equipment, including relative shaft vibrations, absolute bearing vibrations, turbine cover vibrations, axial thrust bearing vibrations, stator core vibrations, stator bar vibrations, and stator winding vibrations, etc. To measure vibrations and detect abnormal operating conditions in operation, a portable system is presented, consisting of a laser source, an affordable telecommunication optical fiber, a signal conditioning and processing device, and a portable computer for data storage and analysis. An optical sensor, based on the interferometer principle, is used as a passive detector of very low amplitude vibrations instead of the ubiquitous piezoelectric, micro-electro-mechanical systems (MEMS) or non-contact capacitive sensors. The developed portable measurement system was experimentally verified on a laboratory model, and the results obtained were compared with those obtained with traditional sensors. Through research and measurements, the goal is to examine and perfect an algorithm that will enable off-line, as well as on-line, early detection of abnormal operation of the hydroturbine generator unit, as well as prove the possibility of remote measurement using the existing telecommunication optical infrastructure of PP HE JUG, HEP - Proizvodnje. The purpose of this paper is to present part of the scientific research related to the development of a new sensor based on optical interferometry for monitoring vibrations and optimizing the operation of aggregates.