Photoplethysmography (PPG) is a noninvasive optical technique, which can also be used to derive important parameters other than arterial oxygen saturation (SpO2). In this work, the accuracy of the technique on detecting changes in blood perfusion during different levels of vascular occlusions has been explored. A dual-wavelength, reflectance PPG probe was applied on the left forearm of 10 healthy volunteers and raw PPG signals were acquired by a research PPG processing system. The raw PPG signals were separated into pulsatile AC and continuous DC PPG components. The signals were used to estimate SpO2 and changes in concentration of oxygenated, deoxygenated, and total haemoglobin. Different levels of occlusions, from 20 mmHg to total occlusion were induced by a pressure-cuff on the left arm. The system was able to indicate all the occlusions. In particular, the haemoglobin concentration changes estimated from PPG were in high agreement with Near Infrared Spectroscopy measurements.