Optical Frequency Domain Reflectometry (OFDR) with the use of polarization maintaining fiber (PMF) is capable of distinguishing strain and temperature, which is critical for successful field applications such as structural health monitoring (SHM) and smart material. Location-dependent measurement sensitivities along PMF are compensated by cross-and auto-correlations measurements of the spectra form a distributed parameter matrix. Simultaneous temperature and strain measurement accuracy of 1 mu strain and 0.1 degrees C is achieved with 2.5mm spatial resolution in over 180m range.