This paper established and constructed a two-input single-output BP neural network to realize the light intensity compensation and nonlinear correction of optical fiber displacement sensor.It discussed the advantages of BP network based on L-M optimization algorithm,indicated the weight modified method and neural network training steps,clarified the principle of the sensor's light intensity fluctuation compensation and non-linear correction of using the neural network.Finally,it used Matlab software on computer to program the neural network,and applicant the network in the actual measurement.The results show that the network can achieve a good compensation for light intensity and nonlinear correction of sensors.