In this study, the spectral amplitude coding optical code division multiple access (SAC- OCDMA) is proposed for streaming data over a wireless transmission channel. A fiber-Bragg-grating (FBG)-based parallel multiwavelength fiber laser is exploited as the light source, and a quasi-orthogonal M-sequence code as the signature address code is prewritten in the FBG-based encoder to create an identifiable spectral label. In free-space optics (FSO) systems, the experimental implementation of the proposed scheme verified that spectral labels resulting from an objectʼs signals could preserve clear sensing signals in the transmitted encoded spectral label. After multiple spectral-label signals were passed through a real free-space channel in air at normal atmospheric temperatures, the results of the identification and sensing experiment showed that the autocorrelation (matched) and cross-correlation (unmatched) scenarios were tested to identify an individual object using the spectral-label decoder, and then unmatched noise interference was completely cancelled to sense successfully the object's signal using a balanced photodetector.