This Letter proposes a highly birefringent one-air-hole panda fiber, which is fabricated by corroding a single stress zone of the traditional panda-type polarization-maintaining fiber (PMF). An additional geometric asymmetry is induced in the fiber to increase the birefringence effect and enhance the light-matter interaction, which improves the performance of the sensor and the device applications of the special fiber. A theoretical and experimental analysis of the one-air-hole panda fiber demonstrates that the birefringence of the fiber can be of the order of 10-3, which is one order of magnitude higher than that of the traditional panda-type fiber. The corroded region provides a microchannel to be filled with a functional material to compose optical fiber sensors; a sample of a salt solution was filled into the microchannel to measure the refractive index with a sensitivity of 3760 nm/RIU (refractive index units).