This paper presents the results of an experimental investigation of the behavior and strain-sensing characteristics of short tubes strengthened by basalt fiber-reinforced polymer (BFRP) with built-in fiber Bragg grating (FBG) sensors. This study introduces a corrugated steel with punched-in patterns to improve the buckling failure mechanism of thin-walled circular hollow section (CHS) tubes. Thirty-five specimens are tested under axial compression to investigate the effects of the BFRP strengthening and the punched-in. The self-sensing properties of the built-in FBG sensors are analyzed using wavelength shift data gathered from nine additional specimens. The results demonstrate that the punched-in patterns and the BFRP can significantly enhance the strength of CHS tubes by 98% for 0.7 mm and 36% for 1.2 mm using 2 layers of BFRP. The built-in FBG sensors fulfill the demand for intelligent monitoring of FRP strengthened steel tubes. Analysis on design rules revealed that the interaction between the punched-in patterns and the BFRP must be further considered to accurately predict the compressive capacity of the proposed tubes. Finally, the innovative tubes display potential benefits in terms of cost and weight performance to replace traditional steel tubes.