Internal erosion is the cause of a significant percentage of failure and incidents involving both dams and river embankments in many countries. In the past 20 years the use of fibre-optic Distributed Temperature Sensing (DTS) in dams has proved to be an effective tool for detection of leakages and internal erosion. This work investigates the effectiveness of DTS for dike monitoring, focusing on early detection of backward erosion piping, a mechanism that affects the foundation layer of structures resting on permeable, sandy soils. The paper presents data from a piping test performed on a large-scale experimental dike equipped with a DTS system together with a large number of accompanying sensors. The effect of seepage and piping on the temperature field is analysed, eventually identifying the processes that cause the onset of thermal anomalies around piping channels and thus enable their early detection. Making use of dimensional analysis, the factors that influence that thermal response of a dike foundation are identified. Eventually some tools are provided that can be helpful for the design of monitoring systems and for interpretation of temperature data.