Among all the kinds of optical fiber sensors, FBG and LPFG become the main current owing to its features and advantages. LPFG sensor is especially suitable in high temperature sensing and stimulates more related research interests. The key point of LPFG sensing is the signal demodulation and processing. In this paper, signal demodulation of the LPFG strain sensor was studied based on Arrayed Waveguide Grating. The fabrication method and high temperature performance of this sensor were presented,and a novel strain signal demodulation method was presented based on Arrayed Waveguide Grating (AWG) device by equi-intensity cantilever beam. The experimental results demonstrated that the signal demodulation technology based on AWG has many advantages, such as simple structure, innovative and reliable performance.