An alternative solution for the simultaneous measurement of temperature and refractive index is presented. A local micro-structured fiber Bragg grating (LMSFBG) is formed as the sensing head, in which a standard grating is etched by HF. According to the phase shift theory, the main spectral change of the LMSFBG is the formation of a narrow allowed band, which is strongly dependent on the etching features and the surrounding refractive index. As such, the temperature and refractive index measurements can be achieved by the shifts of the double peaks and narrow allowed band, and their fitting linearity coefficients are 0.996 and 0.994, respectively. Thus, the reflection and transmission peaks of the LMSFBG have a good linear relationship with temperature and refractive index.