An ultra-short high-temperature fiber-optic sensor based on a silicon-microcap created by a single-mode fiber (SMF) and simple fusion splicing technology is proposed and experimentally demonstrated. A section of the SMF with a silicon-microcap at one end is connected to the "peanut" structure to build the microcap-based optical fiber improved Michelson interferometer (MI). The optimal discharge parameters of microcap and length of SMF has been investigated to achieve the best extinction ratio of 6.61 dB. The size of this microcap-based improved MI sensor is 560 µm and about 18 times shorter compared to the current fiber tip interferometers (about 10 mm). Meanwhile, it showed good robustness during the two heating-cooling cycles and the duration period stability test at 900 °C. This microcap-based improved MI sensor with the smaller size, simple fabrication, low cost, high reliability, and good linearity within a large dynamic range is beneficial to practical temperature measurement and massive production.