A brand new design of temperature sensor using ferrofluid thin film is proposed in this paper. When magnetic field parallel to the plane of the ferrofluid thin film is applied, magnetic chains form in the same direction of the magnetic field, which results in the suppressing of optical transmission. It is observed that the optical transmission is changed by the ambient temperature, so that temperature sensor can be constructed by measuring the transmission power of a laser. The physics and the sensitivity of the temperature sensor are also analyzed.