To prevent possible threats to public safety and economic loss from chemical leakage accidents, novel chemical sensing techniques for regular monitoring and leakage detection have been developed for various fields. We propose a fiber optic liquid chemical sensor (FOCS) system using specialty optical fibers and an optical time domain reflectometer (OTDR), and is based on the leaky wave mode sensing principle. OTDR enables simple multiplexing where individual sensor nodes along the fiber length could be interrogated by a common OTDR. The sensor node in the optical fiber is prepared by removing the desired length of a protective layer using mechanical stripping and chemical etching techniques. A novel laser stripping technique with superior capability to fabricate quasi-distributed dense sensor nodes is devised as well. The FOCS system is further analyzed to characterize the sensor response behavior in relation to the sensor node length and possible environmental and chemical temperature effect. Under the condition satisfying the leaky wave mode principle and within the minimum acceptable refractive index (RI) range by the system, this FOCS system could monitor numerous liquid chemicals with variable refractive indices and has been tested with positive results. In addition, the system shows the possibility for multi-point detection and is further expanded into a hybrid technique capable of estimating the refractive index range of the detected chemical.