The invention provides a fiber-optic sensing system, utilizing a fiber-grating-based sensor, for a physical parameter, e.g., a pressure or a temperature. Different kinds of fiber-grating-based sensors may be used for this purpose but in-fiber gratings such as Fiber Bragg Grating, Long Period Grating and Surface Corrugated Long Period Fiber Grating are particularly suitable. Due to the small size of the optical fiber and the fact that same fiber acts as the sensing element as well as the signal conducting medium, it is possible to install the sensor in a small diameter needle which is commonly used for medical diagnosis and treatment. As a result, when the fiber-optic sensing system of the invention is used for in-vivo measurement of a biological parameter, such a sensing needle can be used for different in-vivo pressure or temperature sensing applications without causing too much harm and discomfort to the subject tested.