This paper describes the design details and the characterization of an all digital closed-loop (ADCL) interferometric fiber optic gyroscope (IFOG) Prototype with sine wave biasing modulation and SLED emiting at 1288.9 nm, constructed in TUBITAK UME. Electronic feedback section of ADCL-IFOG is composed of 16 bit AD7714YN ADC, 14 bit-LTC1667CG DAC, fully controlled and synchronized by 89C51 microcontroller. The averaged sensitivity of the ADCL-IFOG prototype in unit of error voltage applied to the phase modulator was calculated as 132.65 μV/(°/h) which equals to a scale factor of 7.53888 (°/h)/mV with a standard deviation of 0.85% for a range of 1–15270 (°/h) rotation rate, corresponding to a range of Sagnac phase shifts varying from 0.00115 to 17.57448 (°). The maximum peak to peak noise and the bias stability of the prototype were determined as 4.97 and 1.48 (°/h) at 23.0°C, respectively. The variation of the noise and bias stability on a temperature range of 23.0–42.0°C was observed.