Combining the virtual instrument technology with the fiber Bragg grating sensing technology, a new fiber Bragg grating sensing demodulation system based on Lab VIEW has been designed. The unbalanced Mach-Zehnder interferometer demodulation technology has been used in this system to translate the fiber Bragg grating wavelength signals in which the strain information is contained into the phase signals,and transfer it to the virtual instrument based on Lab VIEW with the high speed data acquisition card,then conduct process operations and results display [1]. At last, the value of measured strain can be obtained. Compared with the conventional demodulations system,the accuracy this interferometer demodulation system’s measurement has been increased greatly. At the same time, it solves the problem of high cost, large volume and only displays the wavelength with the conventional demodulations system.