A temperature sensor using a fiber-optic Fabry-Perot interferometer is described. A pseudo-heterodyne detection scheme is adopted to read the light phase difference in the Fabry-Perot interference output. A higher harmonic components comparison method is used to stabilize the system and to increase detection linearity. This system realizes not only highly sensitive temperature sensing with good linearity and minimal adjusting error, but also application to the sensing of other physical quantities such as vibrations. Additionally, the signal-to-noise ratio and distortion of the detected signal are investigated as functions of fiber end reflectivity. These results will be useful in designing a high performance fiber-optic Fabry-Perot thermometer.