We demonstrated a novel fiber in-line Mach-Zehnder interferometer (MZI) with a large fringe visibility of up to 17 dB, which was fabricated by misaligned splicing a short section of thin core fiber between two sections of standard single-mode fiber. Such a MZI could be used to realize simultaneous measurement of tensile strain and temperature. Tensile strain was measured with an ultrahigh sensitivity of -0.023 dB/μɛ via the intensity modulation of interference fringes, and temperature was measured with a high sensitivity of 51 pm/°C via the wavelength modulation of interference fringe. That is, the MZI-based sensor overcomes the cross-sensitivity problem between tensile strain and temperature by means of different demodulation methods. Moreover, this proposed sensor exhibits the advantages of low-cost, extremely simple structure, compact size (only about 10 mm), and good repeatability.