A high sensitivity fiber-optic torsion sensor is described,which measures twist rate and determines twist direction simultaneously by using a novel ultra long-period fiber grating (ULPFG) with periods of up to several millimeters fabricated by high frequency CO2 laser pulses. The torsion characteristics of a ULPFG are analyzed based on the coupling theory and birefringence phenomena. The experimental results show that a higher torsion sensitivity of 0.2244nm/(rad/m) for high order resonant modes was obtained, which is four times higher than that of the long-period fiber grating written by high frequency CO2 laser pulses. Finally, an intensity-type demodulation approach for the realization of real-time torsion measurement is proposed and demonstrated based on the edge filtering effect of the ULPFG.