Optical fiber sensors have a number of advantages over conventional electronic sensors such as light weight, small diameter and immunity to electromagnetic interference. Despite all the advantages of optical sensors, one must recognize that optical fibers are foreign entities to the host structure, therefore will induce stress concentration in the vicinity of the embedded sensor. As an optical sensor is embedded between plies, a lenticular resin pocket exists in the composite plies. The resin pocket acts as a crack-like region, and can form the site of the initiation of the delamination under mechanical loads. In this investigation, the geometry of the lenticular resin pocket around the optical sensor is derived basing on the principal of minimum potential energy. It shows that the geometry of the resin pocket is dependent on the stiffness of the plies, the stacking sequence, the diameter of the optical fiber and the curing pressure. The stress distributions in the resin pocket and in the laminated composites are obtained by using the finite element method. The numerical results demonstrate that the stress increases rapidly in the vicinity of the optical fiber sensor, causing a high stress concentration factor. The high stress field may produce delamination and fracture in the composite.