Disclosed is a method and apparatus for modulating the phase difference between a pair of optical waves that exit a Sagnac interferometer, and, more particularly, one that is commonly employed as a fiber gyro, and includes a detector responsive to phase difference between the pair of waves that exit the interferometer, and a phase modulator that forms part of two control loops that are instrumental in deriving an accurate measurement of rotation rate. As disclosed herein, phase modulation applied equally to the pair of waves as they counter-propagate through the phase modulator induces modulation of the phase-difference between the two waves as they exit the interferometer. This phase difference modulation includes (i) a bias phase-difference modulation component having a selected frequency, amplitude, and waveform, (ii) a rotation-rate feedback phase-difference component that is equal in magnitude to, and opposite in sign of, the Sagnac phase difference, so that the sum thereof is controlled to be substantially zero, and (iii) a calibration feedback phase-difference modulation component that is characterized by a predetermined phase difference magnitude having substantially alternating positive and negative sign values.