A fiber Bragg grating (FBG) hydrophone with high sensitivity was demonstrated. This hydrophone used a rubber diaphragm and a copper hard core as the sensing element. To compensate the hydrostatic pressure, a capillary tube was fixed at the end of the hydrophone. Theoretical analysis of the acoustic pressure sensitivity was given in this letter. Experiments were carried out to test the frequency response of the hydrophone. The result shows that when the Young's modulus of the diaphragm is higher, a flatter frequency response will be obtained.