A parallel demodulation system for extrinsic Fabry-Perot interferometer (EFPI) and fiber Bragg grating (FBG) sensors is presented that is based on a Michelson interferometer and combines the methods of low-coherence interference and Fourier transform spectrum. Signals from EFPI and FBG sensors are obtained simultaneously by scanning one arm of a Michelson interferometer, and an algorithm model is established to process the signals and retrieve both the wavelength of the FBG and the cavity length of the EFPI at the same time, which are then used to determine the strain and temperature.