A novel optical etalon based on a strongly chirped sampled Bragg grating is proposed for fiber grating sensing demodulationg system applications. This kind of grating can be produced with proper chirp and sampled distribution parameter. The computer simulation and experimental result is presented.Compared with other conventional etalons,the etalon based on strongly chirped sampled Bragg grating has the advantages of good stability and simple production process,and also is promising for mass production.