An all-fiber sensor capable of simultaneous measurement of temperature and strain is newly presented. The sensing head is formed by a fiber Bragg grating combined with a section of multimode fiber that acts as a Mach-Zehnder interferometer for temperature and strain discrimination. The strain and temperature coefficients of multimode fibers vary with the core sizes and materials. This feature can be used to improve the strain and temperature resolution by suitably choosing the multimode fiber. For a 10 pm wavelength resolution, a resolution of 9.21 mu epsilon in strain and 0.26 degrees C in temperature can be achieved.