A non-contact vibration sensor based on the fiber Bragg grating (FBG) sensor has been presented, and it is used to monitor the vibration of rotating shaft. In the paper, we describe the principle of the sensor and make some experimental analyses. The analysis results show that the sensitivity and linearity of the sensor are -1.5 pm/μm and 4.11% within a measuring range of 2 mm- 2.6 mm, respectively. When it is used to monitor the vibration of the rotating shaft, the analysis signals of vibration of the rotating shaft and the critical speed of rotation obtained are the same as that obtained from the eddy current sensor. It verifies that the sensor can be used for the non-contact measurement of vibration of the rotating shaft system and for fault monitoring and diagnosis of rotating machinery.