Apparatus having a fiber optic tether disposed in coiled tubing for communicating information between downhole tools and sensors and surface equipment and methods of operating such equipment. Wellbore operations performed using the fiber optic enabled coiled tubing apparatus includes transmitting control signals from the surface equipment to the downhole equipment over the fiber optic tether, transmitting information gathered from at least one downhole sensor to the surface equipment over the fiber optic tether, or collecting information by measuring an optical property observed on the fiber optic tether. The downhole tools or sensors connected to the fiber optic tether may either include devices that manipulate or respond to optical signal directly or tools or sensors that operate according to conventional principles.