Structural health monitoring of fiber-reinforced composite-based joints for automotive applications during their manufacturing and on-demand assessment for its durability in working environments is critically needed. High-definition fiber-optic sensing is an effective method to measure internal strain/stress development using minimally invasive continuous sensors. The sensing fiber diameters are in the same order of magnitude when compared to reinforcement (glass, basalt, or carbon fibers) used in polymer composites. They also offer a unique ability to monitor the evolution of residual stresses after repeated thermal exposure with varying temperatures for automotive components/joints during painting using an electrophoretic painting process. In this paper, a high-definition fiber-optic sensor utilizing Rayleigh scattering is embedded within an adhesive joint between a carbon fiber-reinforced thermoset composite panel and an aluminum panel to measure spatially resolved strain development, residual strain, and thermal expansion properties during the electrophoretic paint process-simulated conditions. The strain measured by the continuous fiber-optic sensor was compared with an alternate technique using thermal digital image correlation. The fiber-optic sensor was able to identify the spatial variation of residual strains for a discontinuous carbon fiber-reinforced composite with varying local fiber orientations and resin content.