In this paper, a femtosecond laser fabricated fiber inline micro Mach-Zehnder interferometer with deposited palladium film for hydrogen sensing is presented. Simulation results show that the transmission spectrum of the interferometer is critically dependent on the microcavity length and the refractive index of Pd film and a short microcavity length corresponds to a high sensitivity. The experimental results obtained in the wavelength region of 1200-1400 nm, and in the hydrogen concentration range of 0-16%, agree well with that of the simulations. The developed system has high potential in hydrogen sensing with high sensitivity. © 2012 Optical Society of America OCIS codes: 060.2370, 310.6860, 320.2250 In recent years, optical fiber sensor has attracted more and more attention in academic and industrial communities. The advantages provided by the optical fiber sensor include small size, light weight, high sensitivity and immunity to electromagnetic interference, which facilitate the measurement of a variety of physical, chemical, and biomedical parameters [1][2][3]. Femtosecond (fs) laser processing is an emerging field with important application prospects. Fs laser has been widely used for micromachining because of its good beam quality, high precision and excellent spatial resolution, which are particularly suitable for fabricating microcavity in the optical fiber. Various structures of microinterferometer cavity have been created by fs laser and used as optical fiber sensors [4][5][6][7][8]. Especially, an ultracompact microcavity Mach-Zehnder interferometer (MMZI) fabricated by fs laser has been used for measuring refractive index (RI) and different mixture ratios of N 2 and He gases [6,9]. MMZI has also been proposed for temperature measurement and the sensitivity achieved is ∼0.046 nm∕°C within the temperature ranging from 100°C to 1100°C [10][11][12][13][14][15][16].In this paper, an fs laser-fabricated MMZI fiber hydrogen sensor is proposed and developed. A palladium (Pd) film is deposited on the MMZI by magnetron sputtering process to be used as the transducer layer between the gas and the optical fiber waveguide for monitoring hydrogen concentrations. The MMZI coated with the Pd film is analyzed and discussed under different conditions such as different microcavity lengths and different hydrogen concentrations. The experimental results obtained show that transmission spectrum of the MMZI varies with the the hydrogen concentration and the period of the spectrum is dependent on the microcavity length, which agrees with the simulated results.In principle, there are two main light transmission paths on the MMZI coated with the Pd film according to the traditional theory of MMZI. Figure 1 shows the schematic structure and digital microscope (VHX-100) images of the MMZI which are fabricated by fs laser ablation.The interference intensity can be expressed by [17]where I 1 and I 2 are the intensities along the two light paths and φ is the phase difference to be defined aswhereΔn eff is the RI difference betwe...