Pipelines are critical for transportation of oil and gas. A Steel Strip Reinforced Thermoplastic Pipe (SSRTP) is applied in the offshore environment because of its superior mechanical performance. Due to the complex subsea conditions, SSRTP is subject to severe loading and may be damaged during its design life. The failure modes of SSRTP, related to four principle loading cases, are investigated in the FE models. The preliminary results will reveal the mechanical behavior of the critical layer of SSRTP prior to damage. An optical fiber sensor is then introduced within the SSRTP as a novel system to monitor the strain of the critical layer.