We report a whispering gallery mode (WGM)-based fiber optofluidic laser (FOFL), in which rhodamine B (RhB) in an aqueous surfactant solution of sodium dodecylbenzene sulfonate (SDBS) is used as the laser gain medium. Here, the role of SDBS is to scatter the RhB dye molecules to effectively prevent its self-association in the aqueous solution. Therefore, the fluorescence quantum yield of the used RhB dye is improved due to the enhanced solubilization, which results in a low lasing threshold of ∼2.2 µJ/mm2 when the concentration of SDBS aqueous solution reaches up to 20 mM, on par with or even better than most of the optofluidic dye lasers using RhB as the gain medium in an organic solution. We then establish a model of solubilization capacity of SDBS micelles, which successfully addresses the mechanisms of dye-surfactant interactions in the proposed FOFL system. We further apply this FOFL platform to the case of concentration sensing of the used SDBS, which exhibits a 2-order-of-magnitude improvement in sensitivity compared to the fluorescence measurement due to the signal amplification inherent to the lasing process. The proposed FOFL platform in combination with surfactant solubilization gain medium in an aqueous solution promises to enable chip-scale coherent light sources for various environmental and bio-chemical sensing applications.