Passive-Optical-Networks (PON) have emerged as a pivotal technology for broadband access network and are now expanding to wireless communication, supporting 5G and development of future 6G frameworks. PON systems are expected to find many new applications, including in electrical power grids, modern industrial factories, and smart city infrastructure. With the growing capabilities and increasing complexity and extent of the optical distribution network, effective surveillance of fiber infrastructure has become increasingly important to ensure long-term viability and dependability. Simultaneously, there is increasing demand for effective distributed monitoring systems for the power-grid elements and machinery in automated factories operating within PON environments. This paper discusses the challenges and potential solutions for implementing distributed acoustic sensing (DAS) within PON architecture. We will present design and experimental demonstrations of a co-existing DAS and 10G PON (XGS-PON) system with a 23.5 km feeder fiber (FF) and a 1 × 16 splitter. A unique signature from each distributed fiber (DF) and optical network units (ONU) is detected by utilizing a “coded” Enhanced Scatter Fiber (ESF). Vibration events originating from up to three DF/ONUs are identified using a novel scheme using the “coded” ESFs in conjunction with fiber delay lines. We further investigated the sensing performance and potential crosstalk between XGS-PON and DAS signals within this co-existing DAS and XGS-PON system.