In this paper, a study on a portable hydrogen alarm system based on the palladium coated single mode fiber sensor has been reported. The fabricated hydrogen sensor exhibited 0.14 dB, 0.41 dB and 0.54 dB optical intensity variation when it was exposed by the nitrogen and hydrogen mixed gas containing 0.5 %, 1 % and 4 % of the hydrogen concentration, respectively. The fabricated sensor exhibited 20 second of response time and 120 second of recovery time for 4 % hydrogen containing gas. The fiber optics layout and software algorithm for detection of hydrogen leakage have been presented. The implanted portable hydrogen alarm system successfully generated an alarm signal when a 4 % hydrogen containing gas was leaked out.