This paper presents a new operation and maintenance system for PON (Passive Optical Network) subscriber loops and an assessment of its feasibility through experiments. This system adopts a broadband continuous wave light source as a testing signal and a fiber grating filter as a reflective component. The fiber grating filter is inserted somewhere in each subscriber loop for reflection of the testing signal. Our results show that the proposed system operates well for the purposes of quick decision of loop state and easy testing for PON subscriber loops.