A novel interrogation scheme to detect fine Bragg wavelength shift using a long period fiber grating pair with erbium-doped fiber inserted between the two gratings is reported. The technique is shown to feature high resolution and much more immunity to temperature perturbation compared to the conventioned Mach-Zehnder interferometer demodulation system. For quasi-static strain measurement, this approach provides high wavelength resolution of 0.05 pm that corresponds to 41.7 ne in strain and $3.8 $ imes$ 10^{-3}$</TEX>$^{circ}C$ in temperature. This interrogation system is also employed in dynamic measurement to obtain the minimum detectable strain perturbation of ~ 8.76 ne/H $z^{{frac}{1}{2}}$ at 100 Hz. Moreover, this interrogation system has prominent thermal stability. This thermal stability comes from the fact that two arms of the interferometer, the core and cladding in erbium-doped fiber, are exposed to nearly the same environment .