Minimally-invasive surgery has revolutionized many medical procedures;​ however, it also impedes the ability to feel the interaction between the surgical tool and the anatomical part being operated on. In order to address this problem, it is necessary to obtain accurate measurements of the interaction forces exerted on the surgical tools during surgery. These forces can then be manifested to the surgeon via a haptic device or presented visually (visual-force feedback). This thesis describes the use of a fiber optic device to measure and display to the surgeon interaction forces acting on an arthroscopic tool. The sensorization of the tool involves a simple, highly efficient and robust design and is ideally suited for use in a surgical training environment aimed at narrowing the gap between trainees and expert surgeons before the trainees proceed to their first surgery in vivo. The major advantages of using fiber optics include their small size, their local simplicity, their ease of sterilization, and their high sensitivity. In this thesis, a complete low-cost sensing solution is described, including 1) the use of fiber Bragg grating and long period grating sensors, 2) design of a low-cost optical interrogator, 3) high resolution electronic signal processing, and 4) fabrication of the tool using wire EDM, CNC, and 3D metal sintering technologies. The full design of an arthroscopic grasper is presented, along with the preliminary design and manufacturing of an arthroscopic probe and shaver. The designed low-cost system was compared with a commercially-available optical interrogator. The calibration and experimental results for this system are presented and discussed for accuracy and performance of the sensorized tool before and after an axial element was added for increased sensitivity. Sources of error and methods of improvement for the optical system, arthroscopic tool, and testing procedures are discussed to inform the design of future generations of these instruments.