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We present the design and fabrication of a grating demultiplexer with a hollow optical waveguide. The use of a hollow optical waveguide enables temperature-insensitive operations as well as wavelength tunability with the help of microelectro-mechanical system (MEMS) technology. We present the design of a compact reflective concave grating demultiplexer using a hollow optical waveguide whose wavelength resolution is less than 1 nm. In order to reduce the insertion loss, we use a hollow optical waveguide with either metal thin-film coating or dielectric multilayer mirror. We fabricate Au-coated hollow waveguide grating demultiplexers with various device lengths. We measure the spectral response from the fabricated demultiplexers, exhibiting a possibility of high wavelength resolution of below 1 nm. We also present the evaluation of multi-channel operations using a fabricated demultiplexer.