As well known, polarization-maintaining optical fiber and its components can be used in many areas related to fiber optics, such as coherent optical communication and optical fiber sensors based on interferometric techniques. In this paper, we proposed a Mach-Zehnder interferometer with two 2 by 2 fused taper polarization-maintaining optical fiber couples, in which a 1.3 micrometers LD is used as light source and the polarization-maintaining optical fiber is Bow-Tie fiber. Using this fiber interferometer, the measurement of displacement and vibration can be realized.