In this paper, we describe a novel method for spatially distributed temperature measurement with Chirped Fiber Bragg Grating (CFBG) fiber-optic sensors. The proposed method determines the thermal profile in the CFBG region from demodulation of the CFBG optical spectrum. The method is based on an iterative optimization that aims at minimizing the mismatch between the measured CFBG spectrum and a CFBG model based on coupled-mode theory (CMT), perturbed by a temperature gradient. In the demodulation part, we simulate different temperature distribution patterns with Monte-Carlo approach on simulated CFBG spectra. Afterwards, we obtain cost function that minimizes difference between measured and simulated spectra, and results in final temperature profile. Experiments and simulations have been carried out first with a linear gradient, demonstrating a correct operation (error 2.9 °C); then, a setup has been arranged to measure the temperature pattern on a 5-cm long section exposed to medical laser thermal ablation. Overall, the proposed method can operate as a real-time detection technique for thermal gradients over 1.5–5 cm regions, and turns as a key asset for the estimation of thermal gradients at the micro-scale in biomedical applications.