An interferometric strain-sensing system that combines an unbalanced Mach-Zehnder wavelength discriminator and spliced different-diameter fiber Bragg gratings is presented that has the capability to distinguish strain from temperature effects. Because the gratings are written in 135- and 165- microm -diameter fibers drawn from the same preform, when they are spliced they show similar temperature sensitivities but different responses to applied strain. Thus the relative Bragg wavelength difference of the two gratings is affected only by strain, and one can measure it accurately by monitoring the amplitude variation of the interference signal rather than the conventional phase variation.