This paper presents a fiber Bragg grating (FBG) based sensor to study the concentration of laser dye in dye–ethanol solution. The FBG used in this experiment is indigenously developed using 255 nm UV radiations from copper vapour laser. The cladding of the FBG was partially removed using HF-based etching to make FBG sensitive to changes in the surrounding refractive index. The experimental results on the shift of the Bragg peak wavelength with HF etching and different dye concentration in ethanol are presented. The Bragg wavelength shifted from 1534.670 nm to 1534.225 nm in 30 min and from this point to 1533.97 in the next 2 min. The clad-etched Bragg peak shifted almost linearly from 1534.056 nm to 1534.162 nm as surrounding dye concentration in ethanol changes from 0 mM to 1.5 mM. It was observed that sensitivity depends on the concentration of the solution and found to be 70 pm/mM.