A fiber Bragg grating (FBG) displacement sensor based on synchronous sensing is developed for real-time monitoring of a tunnel lining. The sensing principle and mechanical structure of the proposed sensor are analyzed and simulated, and its sensitization effectiveness and temperature compensation are verified. Equivalent model tests show that the sensor has a good linear sensitivity of 19.48 pm/mm and an excellent precision of 5.13×10-2 m m in the displacement range of 0-25 mm, which is basically consistent with the simulation results. The key traffic parameters of the train were successfully obtained by real-time monitoring of the tunnel lining in a field trial, which shows the superior capability of micro-displacement measurement of the sensor. Furthermore, good stability and excellent creep resistance have also been demonstrated. Our results provide theoretical guidance for the fabrication and package of the FBG displacement sensor, which is valuable for structure health monitoring (SHM) in civil engineering applications.