We propose a novel demodulation scheme based on measuring interference fringe visibility and demonstrate it using a typical Michelson interferometer (MI) configuration. The key component to achieve the scheme is a section of highly birefringent fiber (HBF) spliced into the sensing arm to function as the sensing element. The optical path difference (OPD) leads to interference fringes, while the birefringence of the HBF results in a visibility envelop. It is possible to detect measurands associated with birefringence through measuring the visibility, which is attributed to a flexible use of the fundamental principle of interferometry. As one of the potential applications, temperature sensing employing the MI configuration is performed. Moreover, the technique has the advantage of being immune to element instabilities, such as power fluctuation of the light source, phase shift of the reference arm, noise of the photo detector, and wavelength shift of the optical spectrum analyzer (OSA). This work may provide an alternative method to achieve high precision interferometry with low cost.