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A temperature-compensated material of fiber Bragg grating (FBG), which has negative thermal-expansion coefficient has been presented. The temperature coefficient of FBGs’ center wavelength is less than 0.0005 nm/°C after three-layer-structure temperature-compensated package under tension. For the first time, PMD of FBG with and without temperature compensation has been detailedly studied and measured from –20 to 60°C. The measured result shows that the PMD changes a little at varying temperature, which means that the package did not affect the PMD characteristic of FBG.