A two-color homodyne Mach-Zehnder optical fiber interferometer is developed for the measurement of electron and neutral particle densities in a high-density capsule θ-pinch device. The interferometer leverages the disparate contributions of distinct particles to the refractive index across two discrete wavelengths of 1310 and 1550nm and incorporates the contributions of both electron and neutral particle densities to the phase shift in the plasma. The temporal evolutions of line-integrated electron and neutral argon densities are successfully measured by the interferometer. Comparing the electron density waveforms under various working gas pressures as well as the results obtained using the monochromatic and two-color measurements, it is inferred that the influence of neutral particle density can be neglected when measuring the electron density using a long-wavelength laser. Moreover, the maximum electron density is linearly correlated with the capacitor bank voltage for the θ-pinch device (5-9kV). Overall, the proposed interferometer is capable of simultaneously measuring the electron and neutral particle densities.