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This paper describes and analyzes a particular application of high duty-cycle time-division multiplexing to the separation and identification of signals from an interferometric sensor array. Using the method discussed here, the coherence length of the laser is no longer a severe design constraint. Also, the source phase-induced intensity noise which limits some other multiplexing methods may be overcome, leading to a higher sensitivity. The arrays of all-passive remote sensors exhibit minimal crosstalk between sensors, and have downlead insensitivity. A synthetic heterodyne demodulation technique prevents environmentally induced signal fading. Analysis includes coupling ratios for all directional couplers in the system, signal and noise spectra, minimum detectable phase shift, and the effect of ac coupling on noise and crosstalk. An experimental all-fiber implementation of a two sensor array has yielded a measured sensitivity of approximately 10 μrad/ over a range of signal frequencies, and a crosstalk level of better than 55 dB.