Based on measured strain data, a method of differential settlement identification of piers for continuous beam is proposed using theoretical and experimental analysis. First, the analytical formula with respect to the Variation of Strain Value (VSV) of the beam and the differential settlement identification of piers is derived by employing a three-equal-span continuous beam for instance. Also it is proved that the VSV result from minor differential settlement of piers is measureable in the case of a certain rigid light railway bridge. Second, the relationship between the VSV obtained from the bottom of the beam and the upright rectification value is analyzed using a three-unequal-span continuous beam for verification, where the settlement is simulated using the upright rectification method. Meanwhile, the performance of the new type Fiber Bragg Grating (FBG) sensors is demonstrated as well. Third, for the experimental model, the expression of the relationship between the VSV on the bottom of the beam and the differential settlement of the piers is derived, which reflects a well consistency between theoretical and experimental results in both cases (differential settlement of side pier and mid pier) under the condition of various degrees of differential settlement. Finally, the identification procedure and strategy are briefly clarified.