Landslide monitoring is important in predicting the behavior of landslides, thereby ensuring environmental, life, and property safety. On the basis of our previous studies, we conducted the double shear test by using a third-generation optical fiber transducer that uses expandable polystyrene (EPS) as base material. However, the third-generation transducer has poor performance when cohesive force is present between the grout and capillary stainless steel pipe of the transducer. Thus, the fourth-generation optical fiber transducer was invented. Similar to the third-generation transducer, the fourth-generation transducer also used EPS as its base material. Single shear test was conducted on the fourth-generation transducer after being grouted with cement mortar (1 : 1 mix ratio). The micro-bend loss mechanism of the optical fiber was considered, and the optical time domain reflectometry instrument was used. The fact that the loss sequence of optical fibers subjected to loading is different at various locations is found. The relationship of the loading-point displacement vs. optical fiber sliding distance and optical loss were measured. Results show that the maximum initial measurement precision of the newly proposed device is 1 mm, the corresponding sliding distance is 21 mm, and the dynamic range is 0–20 mm. The fourth-generation transducer can measure the movement direction of loadings, thus making this transducer applicable for landslide monitoring.