We have implemented a sensor head which consists of erbium doped fiber pumped by 1480 nm LD and single fiber Bragg grating for simultaneous measurement of strain and temperature. The measurement precision and speed are improved by using Mach-Zehnder interferometer instead of optical spectrum analyzer (OSA) as a demodulator. The measurement precision of temperature measured by the amplitude variation of output signal is 0.05$^{circ}C$ and that of strain measured by the phase variation of output signal is 0.1$mu$strain. The measurement precision of temperature and strain are improved nearly 140 times and 700 times, respectively, compared to those using an OSA with wavelength resolution of 0.97 nm as d demodulator.