This paper presents a novel optical fiber torsion sensor based on dual polarized Mach-Zehnder interference (DPMZI). Unlike the conventional fiber sensor, the proposed sensor is composed of a sensor part and a demodulator. The demodulator is made by a bared single mode fiber (SMF) loop, and the sensor part is a segment of a coated SMF placed before the loop. A mathematical model is proposed based on DPMZI mechanism and from the model when the sensor part is twisted, the E-field rotational angle will bring a quasi-linear impact on the resonance dip wavelength in their matched detecting range. A proof-of-concept experiment was performed to verify the theoretical prediction. From the experimental data, a sensitivity of -0.3703, -1.00962, and -0.59881 nm•m/rad is achieved with the determining range of 12.0936, 7.6959, and 10.4444 rad/m respectively. The sensor which is composed only of the SMF has the advantages of low insertion loss (~-2dB), healthy structure, low manufacture cost, and easy assembly and application.