The performance of an open-loop fiber-optic gyroscope is strongly dependent on the optical characteristics of its polarizer. Here we report the implementation of an in-house fabricated 45° tilted-fiber-grating-based polarizer, for the first time on an ultra-fine diameter polarization-maintaining fiber platform in an open-loop fiber-optic gyroscope. This special in-line polarizer is proven to have the merits of high extinction ratio, broad spectrum, bendability, stretchability, temperature insensitivity, and high reliability, all of which make it a perfect match for practical fiber optic gyros that need to be packaged compactly without affecting performance. Our prototype fiber optic gyroscope has a compact volume of only ϕ35 × 20 mm2, achieving a bias instability of less than 0.1 °/h, full temperature bias stability of less than 1 °/h, and scale factor linearity of better than 200 ppm. This compact and high-performance fiber gyro enabled by TFG polarizer may promise great potential in the field of automation and control.