Fiber loop ringdown (FLRD) utilizes an inexpensive telecommunications light source, a photodiode, and a section of single-mode fiber to form a uniform fiber optic sensor platform for sensing various quantities, such as pressure, temperature, strain, refractive index, chemical species, biological cells, and small volume of fluids. In FLRD, optical losses of a light pulse in a fiber loop induced by changes in a quantity are measured by the light decay time constants. FLRD measures time to detect a quantity; thus, FLRD is referred to as a time-domain sensing technique. FLRD sensors have near real-time response, multi-pass enhanced high-sensitivity, and relatively low cost (i.e., without using an optical spectral analyzer). During the last eight years since the introduction of the original form of fiber ringdown spectroscopy, there has been increasing interest in the FLRD technique in fiber optic sensor developments, and new application potential is being explored. This paper first discusses the challenging issues in development of multi-function, fiber optic sensors or sensor networks using current fiber optic sensor sensing schemes, and then gives a review on current fiber optic sensor development using FLRD technique. Finally, design perspectives on new generation, multi-function, fiber optic sensor platforms using FLRD technique are particularly presented.