A simple tunable dual-wavelength fiber laser was developed and multiple self-mixing interferometry to large step height measurement was demonstrated. The fiber laser, which can emit two wavelengths without laser mode competition, is composed of a single fiber ring cavity and two fiber branches. Each branch includes a length of erbium-doped fiber and a fiber Bragg grating. Large step heights can be measured using multiple self-mixing interference of the two wavelengths. The maximum height that can be measured is half synthetic wavelength of the two wavelengths. A step height of 2mm constructed with two gauge blocks has been measured. The standard deviation of measurement results is 2.5nm.