Interferometric sensors fabricated with single mode fiber are subject to polarization fading and phase fading induced by environmental fluctuations. In order to overcome the restriction,a novel optical fiber sensor based on Mach-Zehnder interferometer is presented,in which a PZT with high frequency and the phase generated carrier homodyne demodulation scheme are used for phase compensation. And a spin controllable half-wave plate rotating with signal amplitude is employed for the dynamic compensation of polarization fading. The theoretical results show that the amplitude fluctuation induced by polarization fading is no more than 3 dB.