We present a new and simple fiber‐optic backreflectance method for precise short distance measurement using a single‐mode fiber and cw laser. The method is based on the intensity sensing of focused backreflectance laser emission, and the spatial location of three specific points: the focal point of the focusing optical element and two object points. The optical fiber is used in a multifunctional regime where it serves simultaneously as a point light source, an object for projecting, and a point receiver that is highly sensitive to spatial displacements of the focused backreflectance emission. The experimental and analytical investigations conducted demonstrate the usefulness of the method for distance measurement with submicron (about 370 nm) and millimeter accuracies in the near and far distance region, respectively, for a mirror target 1 m away. ©1996 American Institute of Physics.