This study introduces an innovative integration of hyperbolic metamaterials (HMMs) and photonic crystals (PtCs), each possessing unique dispersion properties that effectively manipulate the propagation of light. We present a PtC waveguide consisting of arrays of HMM nanorods, denoted as HMM PtCs. This waveguide configuration enables the realization of a high figure of merit (FOM) nano-sensor. HMMs and PtCs share the same underlying physics. HMMs can generate surface plasmonics, while PtCs offer a bandgap for the waveguide. This configuration presents a novel sensing solution that directly couples surface plasmonics and waveguide modes. By modifying the refractive indices of the surrounding materials, the PtC waveguide exhibits alterations in absorption and transmission, allowing for the detection of temperature, pressure, and material variations. The refractive indices of the surrounding materials can be adjusted based on the sensor’s intended application. For instance, when the sensor is utilized for temperature sensing, thermal infrared materials can serve as the surrounding medium. As the temperature rises, the refractive index of the surrounding material changes accordingly, impacting the waveguide modes and thereby altering absorption and transmission. We utilized the finite element method to conduct numerical simulations in order to assess the absorption and transmission characteristics of the proposed system. Given that this approach involves a full electromagnetic calculation based on Maxwell’s equations, it closely approximates real-world scenarios. The employed numerical method demonstrates the remarkable performance of this proposed system, achieving a sensitivity of 324.16 nm/RIU (refractive index unit) and an impressive FOM of 469.58 RIU−1. These results signify a substantial improvement over surface plasmonic sensors, which typically exhibit limited FOMs. The direct coupling between surface plasmonics and waveguide modes provides a distinct advantage, allowing the proposed sensor to deliver a superior performance. As a consequence, the HMM PtC waveguide sensor emerges as an exceptionally appealing option for photonic sensing applications. The complexity of the proposed system presents a fabrication challenge. Nevertheless, as fabrication technology continues to advance, we anticipate that this issue can be effectively resolved. The proposed HMM PtC waveguide holds vast potential across diverse fields, including biology, medicine, and clinics, representing an exciting advancement for both industry and scientific research.