Laser direct writing (LDW) is versatile in structuring fibers with micro‐sized functional elements such as fiber Bragg grating (FBG) and backscattering centers by finely manipulating back and side scattering from laser‐induced refractive index modified (RIM) points. However, the side‐scattering is a lesser‐explored property in laser‐structured fibers. In this work, a concise physical model is established to understand the side‐scattering as a combined effect of microstructure and geometry of RIM points. Based on a single‐pulsed LDW method, the parametric decoupling between scattering loss (α) and coupling strength (κ) coefficients of FBGs is reported, whose cross‐section is customized to have a flattened ellipse with thoroughly positive RIM, enabling controllable reflectivity from −21.33 dB to −0.0018 dB while maintaining narrow bandwidth and low loss. Exemplarily, a designed FBG realizes ultra‐low loss of 0.008 dB with a resonance attenuation of 10.81 dB, exhibiting a record‐breaking κ/α of 2083. Using this FBG as the high‐reflective mirror of a home‐made bismuth‐doped fiber laser, narrow‐band lasing with a high optical signal‐to‐noise ratio of ≈43 dB is achieved, demonstrating flexibilities of the proposed approach in customizing both back‐ and side‐scattering in fibers and opening up wide opportunities for combining multifunctional components into optical fibers and realizing all‐fiber networks.