Chinese fusion engineering test reactor (CFETR) is under conceptual design to bridge gaps between ITER and DEMO. CFETR is envisioned to produce a 200 MW (200 MW in phase I and will be increased to 1-GW level) fusion power with tritium breeding ratio >1 and a duty cycle time of approximately 0.3-0.5. This paper is to present the status in the conceptual design of CFETR diagnostic system. Based on the experience obtained in the development of ITER diagnostics and combined with CFETR special requirements, progress of CFETR diagnostic system has been described. They mainly includes: 1) the conditions and constraints in CFETR environment and 2) one set of proposed measurements and candidate diagnostic techniques for CFETR phase I. The possible needed R&D activities for future work are under review. Two R&D examples under progress will be introduced.