A fiber Bragg grating (FBG) pressure sensor with high sensitivity and resolution has been designed and demonstrated. The sensor is configured by firmly fixing the FBG with a metal bellows structure. The sensor works by means of measuring the Bragg wavelength shift of the FBG with respect to pressure change. From the experimental results, the pressure sensitivity of the sensor is found to be 90.6 pm/psi, which is approximately 4000 times as that of a bare fiber Bragg grating. A very good linearity of 99.86% is observed between the Bragg wavelength of the FBG and applied pressure. The designed sensor shows good repeatability with a negligible hysteresis error of ± 0.29 psi. A low-cost interrogation system that includes a long period grating (LPG) and a photodiode (PD) accompanied with simple electronic circuitry is demonstrated for the FBG sensor, which enables the sensor to attain high resolution of up to 0.025 psi. Thermal-strain cross sensitivity of the FBG pressure sensor is compensated using a reference FBG temperature sensor. The designed sensor can be used for liquid level, specific gravity, and static/dynamic low pressure measurement applications.