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In this paper, we propose and design a passive optical network using an array of fiber Bragg gratings (FBGs) for centralized monitoring of the branched optical networks. Further, we exploit the linear properties, namely, reflection and transmission spectra of FBGs for identifying the fiber fault. Besides, we also verify the quality of the downstream signals (1490 nm and 1550 nm) through the well-known eye-diagrams through the spectrum analyzer. We find that the quality of downstream signals remains same even in the presence of monitoring signal and the passive element FBG. Thus, these numerical results corroborate that the monitoring signal and passive element (FBG) do not affect the quality of the downstream signals. Thus, we envisage that the results presented in this paper would turn to be an asset in the area of passive optical network (PON).