Yb-doped phase-shifted fiber Bragg grating (PS-FBG) has been fabricated with phase shift introduced by shielded method. In the fabrication process, the PS-FBG is used as the laser cavity. Whether the introduced phase-shift is π/2 or not is determined by the laser output power. As long as the output power of the laser begins to drop down, the exposure is stopped, and the phase shift is π/2 then. It is necessary to anneal the PS-FBG to stabilize its characteristics, which will reduce the introduced phase-shift. The second exposure of the PS-FBG is needed to restore the π/2 phase shift. A fiber grating laser has been made with the method. When the pump power is 100 mW, the laser output is 25 mW with signal-noise-ratio (SNR) of 60 dB. Within 1 h the output fluctuation of the laser is less than 1%. The laser is always under single-mode operation when the temperature of the fiber grating is tuned between 25 ℃ and 30 ℃.